Buy custom Buying A Home
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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1223 |
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The larger the down payment is, the easier it is to get a mortgage. If the buyer cannot put down at least 20% of the cost, he or she usually will have to get Private Mortgage Insurance. This of course protects the lender from possible losses. There are other options however if a person cannot afford the 20% down payment or obtain the PMI, which increases the monthly payment substantially...
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There are other options however if a person cannot afford the 20% down payment or obtain the PMI, which increases the monthly payment substantially. Banks have created programs that finance up to 100% value of the property and divide it into two loans, the first for 80% and the second for 20%. This way the borrower would not have to get the PMI...
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