This information kindly provided by Richa Badami of Countrywide:
Do you know what mortgage insurance is? Many people confuse mortgage insurance with mortgage life insurance, mortgage disability insurance, or even homeowners insurance. These are all very different types of insurance - no wonder there is such confusion! Mortgage insurance is generally required when the down payment on a home is less than 20%, and it is designed to protect the lender in the event of loan default. The lower the down payment, the higher the risk for the lender, and this can mean a higher monthly mortgage insurance premium. Depending on the specifics of your information, there are ways in which mortgage insurance can sometimes be avoided at the time of purchase, or dropped altogether at some point in the future.
Richa Badami, CMPS Creating Wealth with Mortgage Planning
Certified Mortgage Planner, The Badami Empower Mortgage Group
703-779-7042 Direct Office
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