regarding mortgage PMI?

Question by MinDol: regarding mortgage PMI?
I am trying to buy a house right now.
Can you explain the following statement in a little easier way?

Private Mortgage Insurance: No
“Total Loan Amount subject to change once the loan is registered with FHA and Financed Mortgage Insurance Premium is verified or if any conditions used in establishing the Financed Mortgage Insurance Premium are modified.”

Best answer:

Answer by loanmasterone
Private Mortgage Insurance (PMI) is a type of’ insurance used in conventional mortgage loans when a mortgage loan exceeds 80%of the sale price of the house. This would guarantee the mortgage lender is paid in the event you, as the borrower fail to pay the monthly mortgage payment and the house you purchase eventually is foreclosed on.

Once the balance of your mortgage loan is below 80% you might apply to have this insurance removed and no longer pay for it.

You apparently have applied for a FHA mortgage loan. Though there is no requirement to obtain and pay for PMI. FHA require you to pay something akin to PMI. The difference is you are required to pay this insurance for the life of the mortgage loan or until you refinance and obtain a conventional mortgage loan.

You should inquire of these questions to your mortgage loan officer. Also there are pamphlets available for you at your mortgage loan office.

I hope this has been of some benefit to you, good luck.


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