Private Mortgage Insurance in the Southern Ocean County Real Estate Market
Southern Ocean County Real Estate
Private mortgage insurance is a commonly used but seldom understood tool when buying a home in the Southern Ocean County real estate market. Many buyers do not understand private mortgage insurance, the pros and cons of the program or frankly, what it even is! Therefore, before buying a home in the Southern Ocean County real estate market any buyer should have a thorough understanding of private mortgage insurance and how it can impact your home purchase.
Private Mortgage Insurance in the Southern Ocean County Real Estate Market
When someone buys a home in the Southern Ocean County real estate market and money is borrowed from a lender, the bank will use the house as collateral to secure the loan. The bank will want to see adequate equity in a home which is initially derived from a down payment. In the absence of a large down payment, usually 20%, private mortgage insurance was developed to bridge the gap for buyers who do not have the needed down payment requirement. A few core concepts of the program are:
- Private mortgage insurance is essentially a program designed to protect a lender in the case of default by the borrower.
- In order to qualify for needing private mortgage insurance a borrower must have less than 20% down payment on a home.
- Once the required equity position is reached in the house, a buyer may petition to have private mortgage insurance removed.
Buying a Home in the Southern Ocean County Real Estate Market
Buying a home is a major investment and one that should not be taken lightly. There are many rules and programs the buyers should be aware of and should understand before committing to any purchase. Real estate agents can help connect you with licensed mortgage professionals with whom we have great experience and who can explain the program details of any mortgage product. With such a wide array of loans available it is important to research each program and understand your options thoroughly. For more information about private mortgage insurance in the Southern Ocean County real estate market please do not hesitate to contact us.
Ocean Sales Team
Farrah Pileggi Sales Agent: 201-952-4131
Kim Pileggi Transaction Processor | Nathan Colmer Marketing Agent
Stafford Township | Barnegat Township | Long Beach Island | Ocean Township (Waretown) | Eagleswood | Little Egg Harbor | Tuckerton
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