Our New Jersey Mortgage Company Can Assist You with Private Mortgage Insurance (PMI) | Helberth DeOliveira

Our New Jersey Mortgage Company Can Assist You with Private Mortgage Insurance (PMI)

NJ mortgage company offers PMI flexibility

Private Mortgage Insurance (PMI) is extra insurance that lenders require for loans that are more than 80% of a new home's value. In other words, buyers that provide less than 20% for their down payment are usually required to pay PMI.

While it may seem like an additional expense, private mortgage insurance provides an opportunity for buyers with little cash to experience home ownership. It protects lenders like Jersey Mortgage Company against losses if a loan is defaulted on, while giving more people access to home ownership. Our home loan professionals have been personally working with families from NY, NJ, and CT for decades to make this happen for many who never thought home ownership would be a reality for them.

We’ve helped thousands of people get into their new homes with as little as a 3 to 5% down payment. This means that you can buy a home sooner without waiting years to accumulate a larger down payment.  The cost of private mortgage insurance is divided into two parts. The first part is a payment made at the time of closing. The second is an ongoing payment made each month with your principal and interest payment.

Borrower-Paid Mortgage Insurance (BPMI)

Also referred to as "Traditional Mortgage Insurance" BPMI is insurance issued by a private company that protects the lender against loan default. BPMI is generally required by lenders for borrowers with a down payment of less than 20% of the home purchase price, allowing you to get into your new home with less cash.

BPMI highlights

  • Premium added to monthly mortgage payment
  • Higher monthly payment
  • No tax deduction
  • Option to cancel

Best for those:

  • Who are likely to remain in their home without refinancing for more than ten years
  • With a shorter term mortgage
  • Making a down payment over 15 percent (or at least 15 percent equity if refinancing)
  • Willing to make higher monthly payments in exchange for the option to cancel down the road
  • Expecting an increase in home value due to appreciation or home improvements

For more information related to private mortgage insurance, see:

To learn more about PMI, click here to contact Jersey Mortgage Company in NJ today. You can also call us at 800-342-6597 or get a Quick Rate Quote now.

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