Private Mortgage Insurance

When you first buy a home, it can be very frustrating and

complicated but it can also be extremely exciting. There is

no feeling like being able to call a home your own and have

the freedom to decorate it and change it any way you want.

Do you want old wrecked cars on your lawn Go for it.

Finally build a duck pond of your own Sure, it’s YOUR

house and you can do what you want.

Unfortunately, life happens and sometimes you won’t quite

be able to make your loan payments all the time. This is

where private mortgage insurance comes in.

When you first buy your home, most lenders expect you to

pay a large down payment of at least 20 percent or get some

kind of insurance loan protection program that’s called

private mortgage insurance.

This insurance coverage will protect the lender just in

case you are ever unable to make your monthly payments.

This insurance doesn’t cover anything else though.

If your home catches fire or something, you better hope you

have some other types of insurance. This is only to cover

you if you fail to make your payments.

Even if you don’t need it, it doesn’t hurt to get private

mortgage insurance just in case. No job is 100 percent

reliable and if you have to relocate or change jobs, you

won’t have to worry about your house payment if you happen

to go a week or two without pay. It’s better to be safe

than sorry.