The term “PMI” stands for Private Mortgage Insurance.
When you apply for a mortgage, the lender will typically require a down payment equal to 20% of the home's purchase price. If a borrower can't afford that amount, a lender will likely look at the loan as a riskier investment and require that the homebuyer take out PMI. PMI costs between 0.5% and 1% of the mortgage annually and is usually included in the monthly payment.
PMI can be removed once a borrower pays down enough of the mortgage's principal.
A homebuyer may be able to avoid PMI by piggybacking a smaller loan to cover the down payment on top of the primary mortgage.
If you’re looking to get Pre-Approved for a mortgage ,contact George Sarkis | 781.603.8702 | George.Sarkis@elliman.com -