Let's Take A Dive Into MI. What is Mortgage Insurance?
Manage episode 350431994 series 3398822
Welcome to Real Estate Real Talk With The Mortgage Guys! Today we're discussing Mortgage Insurance, or MI. If you're in the process of buying a home, you may have come across this term and wondered what it means.
Mortgage Insurance is a type of insurance that protects lenders in the event that a borrower defaults on their mortgage. There are two main types of mortgage insurance: MIP and PMI. MIP, or Mortgage Insurance Premium, is required for borrowers who take out a Federal Housing Administration (FHA) loan. PMI, or Private Mortgage Insurance, is required for borrowers who put less than 20% down on a conventional mortgage.
We'll be covering the ins and outs of both MIP and PMI, including how they're calculated and when they can be removed. We'll also delve into funding fees for FHA, USDA, and VA loans. Whether you're a first-time homebuyer or a seasoned real estate investor, this is a must-listen episode for anyone looking to better understand mortgage insurance. Tune in to Real Estate Real Talk With The Mortgage Guys for all your real estate and mortgage questions!