Posted on: 09th Oct, 2008 07:59 am
What does this kind of mortgae mean: Conventional w/PMI ARM???
Fixed rate I thought was Convential but PMI ARM? What does that mean?
Fixed rate I thought was Convential but PMI ARM? What does that mean?
ARM stands for adjustable rate mortgage and PMI stands for Private Mortgage Insurance. Most of the lenders will ask for a PMI if you put 20% or less as down payment and this PMI will also add around half percent to your interest rate.
guest, no matter what you originally negotiated, it appears that you've now acquired an adjustable rate mortgage. as annie said, your loan has private mortgage insurance - this will not add to your interest rate at all. there is a separate portion of your monthly payment that pays for that insurance.
contact your lender and find out what happened to your fixed rate. perhaps it was felt that you'd qualify better with the adjustable. of course, they ought to have discussed this with you beforehand.
contact your lender and find out what happened to your fixed rate. perhaps it was felt that you'd qualify better with the adjustable. of course, they ought to have discussed this with you beforehand.
