9 Myths About Getting a Second Mortgage
If you want to take out a second mortgage, you'll find that there are quite a few myths about this option for homeowners. There are a lot of myths surrounding the process of getting a second mortgage, and it’s important for you to separate fact from fiction. That way you can be more prepared, and you won’t be caught off guard. There are many reasons you might be getting a second mortgage. A lot of homeowners do that in order to make some improvements on the house, while others use it to go back to school, pay off other debts at higher interest rates, or even travel. No matter what you plan to do with the money, first you have to get through the process and understand what all is involved. Here are nine things to consider when you’re sorting through the myths about second mortgages.
PMI Mortgage Insurance: Who Are The 7 U.S. Mortgage Insurers?
The 7 US mortgage insurers that provide private mortgage insurance (PMI) to lenders. Private mortgage insurance (PMI) insures the lender, not you when you buy a home with a down payment of less than 20 percent. It protects their interest in the event you default on your loan and is a requirement by lenders on loans provided to borrowers, with less than 20 percent as a down payment, toward the purchase of a home. So, essentially you are paying an insurer to protect the banks interest on your mortgage if your down payment is less than 20 percent because they are the ones taking the risk on your viability as a borrower.