Can someone explain to me exactly what this is, and if something happends to me who gets the property? Can i put a benificery on my home and leave it to my mother?
2007-11-26 08:45:43 · 4 answers · asked by Irish07 1 in Business & Finance ➔ Renting & Real Estate
PMI covers the lender, not you. It's insurance for which YOU pay to cover the lender in the event of your default on the mortgage.
2007-11-26 08:56:34 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
In Maryland, I paid PMI on top of our mortgage until we own 80% equity in our house (according to an appraisel from our mortgage company). It was $105/month on a $265K home. We did not get a conventional loan. The mortgage company charges this across the board to cover their butt against defaults. Statistics come into play.
2007-11-26 16:50:25 · answer #2 · answered by Chief02 2 · 0⤊ 0⤋
If you dont have a large enough down payment you will be required to pay this insurance until you have more equity in your home. This insures that the mortgage holder will be able to get what they have loaned to you out of the house if they are forced to foreclose. If you die the property will go to who ever you put in your will. You can put a beneficiary deed on it to leave it to your mother which will avoid probate.
2007-11-26 08:55:16 · answer #3 · answered by Diane M 7 · 0⤊ 0⤋
if you do not put 20% done on a house. your mortgage co will need PMI
if you do not pay mortgage. pmi pays off. then they sell house
2007-11-26 08:49:59 · answer #4 · answered by Ralph N 5 · 0⤊ 0⤋