What is PMI?
PMI or Private Mortgage Insurance is extra insurance that lenders require from most home buyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.
Benefits of PMI
PMI plays an important role in the mortgage industry by protecting a lender against loss if a borrower defaults on a loan and by enabling borrowers with less cash to have greater access to home ownership. With this type of insurance, it is possible for you to buy a home with as little as a 3 percent to 5 percent down payment. This means that you can buy a home sooner without waiting years to accumulate a large down payment.
How can I avoid paying mortgage insurance premiums?
If you put down 20 percent or more when you buy a home, you can usually avoid paying mortgage insurance on a conventional loan. And once you've built up a certain amount of equity in your home, you can request to cancel it.
Why choose Grove Mortgage for your VA home loan?
Our headquarters is located in San Antonio, Texas and are a VA Approved lender and Licensed Mortgage Broker and have been specializing in VA Loans throughout Texas since 2002.
We can help you accomplish your home purchase with low rates, expert service, fast closing and low fees.
We proudly boasts an A+ rating from the Better Business Bureau.
