If you’re planning on buying a home, and are like most Canadians, you probably will fall shy of the 20% down payment to obtain a conventional loan. Therefore, you’ll need private mortgage insurance (PMI). Now, some of you may look at “private mortgage insurance” and think that’s a good thing, but it’s not; at least, not for you. Why? Well, when you hear the word “insurance,” you probably think of something that you pay for and that pro » Read more: The Downside Of Private Mortgage Insurance
Private mortgage insurance or PMI as is known is a form of insurance new homeowners are required to purchase. This is particularly so if their down payment is 20 percent or less of the property’s valued price or sale price. The main reason for private mortgage insurance is to protect lenders in the case the new homeowner defaults on their home loan.
Although private mortgage insurance has a bad reputation since it only protects lenders, » Read more: What Is Private Mortgage Insurance?
Buying your home is one of the most exciting and often stressful times. Excitement and anxious suspense is in the air as you are making one of the biggest investment decisions of your life.
After spending months shopping for your dream home you finally make the decision to purchase the house you’ll call your own home. This is the time when for weeks you are shopping for the best mortgage rate. Your lender suggest taking out mortgage i » Read more: Mortgage Insurance Secrets – The Dark Side of Mortgage Insurance
