There are several components to a home owner’s monthly mortgage payment. One important charge is Private Mortgage Insurance (PMI). It can account for a significant portion of monthly payment, so it is important for borrowers to understand what PMI charges may apply to their loan and how much they may be able to save with lower PMI rates from credit unions.
What Is PMI?
Private Mortgage Insurance applies to loans with less than a 20% down payment. There is typically an up-front PMI charge in addition to monthly premiums. With some loans, PMI disappears after the loan is paid down to a certain amount. For other loans, PMI may remain active for the life of the loan.
Lower PMI Rates from Credit Unions
Credit unions operate a bit differently than other lenders. Although some credit unions offer limited home loan programs, others, like Emery Federal Credit Union, are able to provide a full range of programs with competitive terms. More importantly, you may be able to take advantage of lower PMI rates from credit unions. This can result in significant savings and enable a home buyer to qualify for a higher price range.
Contact Christopher Graves at Emery Federal Credit Union for information on loan options available to you and how lower PMI rates from credit unions affect your pre-approval and/or monthly payments. You may also click here to estimate regular PMI rates and compare the figures to credit union PMI rates by clicking here. In some cases, the difference can be as much as half. For more information, contact Christopher Graves at email@example.com or 978-376-5389.