![]() People that cannot afford to put 20 percent down on the purchase of a home generally cannot afford to pay a large, lump-sum private mortgage insurance premium." - Jason M. ![]() But, going this route is not a good choice for everyone. That way, they won't have to worry about monthly mortgage insurance payments and keeping track of when they've reached the 20 percent equity threshold. "I believe that if borrowers can afford to pay for private mortgage insurance upfront in one lump-sum, single payment, they probably should pursue that option. The article states, mortgage insurance paid upfront is "An increasingly popular alternative (that) allows borrowers to buy out of that monthly burden." However, many borrowers have recently been opting to pay for private mortgage insurance upfront - in lump-sum payment - that is paid as part of the loan's closing costs (or it is financed into the loan). Once borrowers reach a 20 percent equity value in their property, private mortgage insurance payments can be eliminated. Private mortgage insurance is a requirement for mortgage borrowers who provide less than a 20 percent down payment when they purchase a home. This type of mortgage insurance allows borrowers to make one lump-sum payment upfront instead of ongoing monthly payments. Ruedy offers his advice on the pros and cons of this type of this lump-sum payment option, which is steadily growing in popularity.Īn article published on on November 6, 2014, entitled Mortgage Insurance Paid Upfront, discusses the topic of single-premium private mortgage insurance. In light of a recently published article on the topic of single premium private mortgage insurance, Mr. Ruedy, also known as The Home Loan Arranger, is in the midst of promoting an educational campaign geared towards educating homeowners who are who are needlessly making monthly private mortgage insurance payments. ![]() Denver, Colorado (PRWEB) Novem- Mortgage Banker, Jason M.
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