MHQ - Mortgage HeadQuarters

In the world of mortgage lending , the details can get to be pretty confusing for those who don't work in the industry every day. The verbiage of mortgage loan documents can be a bit overwhelming, especially when seemingly random acronyms are thrown into every document as if everyone should be born with the knowledge to know what they mean. We understand that sometimes loan documents can be difficult to understand. That's why we encourage you to contact us with any mortgage questions you might have. This week, we're sharing with you 5 common mortgage acronyms you'll likely see on documents if you're getting a loan. 1. PMI is Private Mortgage Insurance. PMI allows you to finance a home with less than a 20% down payment. For an extra monthly cost to you, PMI provides default insurance to the lender. Thinking of saving more to avoid PMI? Accumulating what can be tens or even hundreds of thousands of dollars for a down payment is a challenge for even the most indu...

When applying for a conventional loan, borrowers will typically need to come to the table with 20 percent down. If a borrower isn't able to come up with the funds, lenders may look at the loan as a risky investment, but may still move forward, but require the borrower to take out Private Mortgage Insurance . This may seem like a great opportunity for many borrowers, but it's important to know what you're agreeing to before signing the dotted line. So, this week, MHQ Mortgage Headquarters is sharing with you information about PMI: What it is; What you need to know; Other options; and how to cancel it when you're able. What is Private Mortgage Insurance (PMI)? Private mortgage insurance (PMI) is a type of mortgage insurance that you may be required to pay if you obtain a conventional loan and pay a down payment of less than 20 percent of the home's purchase value. This insurance is required to protect the lender's interest when loaning to a borrower with ...