Mortgage Insurance Often Misunderstood by Home Buyers Across Georgia, US
Mortgage insurance, which is required on home loans when a borrower has less than 20% of the sales price of the property as a down payment, is often misunderstood by home buyers in the Atlanta area and across the country. Many home buyers, who pay for mortgage insurance as part of their monthly home mortgage payment, believe that mortgage insurance protects them against default on their mortgages. In reality, mortgage insurance protects the lender if a home buyer defaults on his or her home mortgage loan. Mortgage insurance can be avoided by putting down at least 20% of a property's sales price as a down payment. Also, once a borrower pays a mortgage down to 80% of the value of the property, the mortgage insurance can be dropped. The main benefit of mortgage insurance for home buyers is that it allows them to obtain home mortgage loans with less than 20% down. Mortgage insurance rates are based on the amount of the borrower's down payment-- the larger the down payment, the smaller the monthly mortgage insurance premium.
Buying a new home in metro Atlanta or anywhere else in the state of Georgia? Contact Peachtree Mortgage Services, Inc. at peachmtg@bellsouth.net to discuss our low home mortgage rates.
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.