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Hey Everyone it's Darren Copeland, Your Local Mortgage Expert.
Have you ever heard of the term PMI? It stands for Premium Mortgage Insurance.
PMI occurs when a buyer doesn't put down 20% when they purchase their new home. Considering
about 5% of our borrowers actually have that amount to put down so if you're in the 95%
majority don't feel bad.
Premium Mortgage Insurance is an additional fee each month that's included in your mortgage
payment. The fee helps cover the bank in case your house ever ends up in foreclosure so
the bank can recoup some of the losses.
PMI is tax deductable just like Mortgage Interest and with most programs will fall off once
you have 78% equity in your home.
For our active and former Military...congratulations as there's no monthly PMI...just the VA funding
fee.
Whether you're looking at FHA, VA, USDA, or Conventional financing we're here to help
and happy to answer any questions in regards to your home loan.
Thanks for watching this video and we look forward to working with you. Please call or
email with any questions.