Posted on: 06th May, 2006 03:39 am
I am looking for a mortgage of $150K. I have down payment of 25%. But I am not sure whether the mortgage insurance is required or not. Making Down payment of 25% is a good choice or less than 25%? Is it needed to pay premium as long as the loan is above 75% of the purchase price?
Hi Kathleen
Whether you decide to put a down payment of 25% or less than that, you have to pay the premium. But one thing is that the percentage of premium is varies on the percentage of down payment. And the premium amount will get added to your borrowed amount.
Like in your case, your total loan amount is $150 K and if you have decided to pay down payment of 25%. In this case, 0.65% of premium is charged on your loan amount. And your total borrowed amount will become $150,975.
Thanks
SJ
Whether you decide to put a down payment of 25% or less than that, you have to pay the premium. But one thing is that the percentage of premium is varies on the percentage of down payment. And the premium amount will get added to your borrowed amount.
Like in your case, your total loan amount is $150 K and if you have decided to pay down payment of 25%. In this case, 0.65% of premium is charged on your loan amount. And your total borrowed amount will become $150,975.
Thanks
SJ
Go through this forum discussion to get a better idea - http://www.mortgagefit.com/mortgage-insurance.html
Usually, if you make a down payment of 20% or more, you may not be required to pay the private mortgage insurance.
hi kathleen...what is the location of the property you are planning to purchase?