Grant Mortgage Insurance

PMI stands for private mortgage insurance and is required when a borrower puts less than 20% down on a mortgage. It protects the lender if the borrower can't make their monthly payment. The insurance is tied to the monthly mortgage payment, usually around $200-300 per month. Borrowers with less than 20% equity in their home are considered riskier. Once you reach 22% equity in a conventional loan, PMI goes away. However, it does not go away on an FHA loan, and you have to pay it until the loan is paid off. Any questions about mortgage literacy, feel free to ask. What is PMI? PMI stands for private mortgage insurance. And it's required whenever a borrower puts less than 20% down on a mortgage. It's a type of insurance that protects the lender in case the borrower can't make their monthly mortgage payment. In case the borrower can't make their monthly mortgage payment. The insurance is tied to your monthly mortgage payment. It can be around $200 to $300 a month. And sometimes can get up to $200 to $300 a month. And sometimes can be $200 to even $300 per month. In the eyes of the bank, borrowers who have less than 20% equity in their home, borrowers with a down payment of less than 20% are considered to be more risky. In the eyes of the lender? No, that's it. Okay. Now, as time goes on and you continue to grow equity in your home, the PMI will automatically go away once you've reached 22% equity in your home on a conventional loan. It's 22 automatically. Can you say that again? The PMI will automatically go away once you've reached 22% equity in your home on a conventional loan. However, mortgage insurance does not go away on an FHA loan. This means that you will have to pay PMI for the life of the loan. Or until the FHA loan is paid off. Feel free to reach out with any questions in regards to mortgage literacy. Feel free to reach out with any questions in regards to mortgage literacy.