Ethan Ewing, President of Bills.com, gives you free information on PMI, private mortgage insurance.
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Ethan Ewing, President of Bills. com, gives you free information on PMI, otherwise known as Private Mortgage Insurance. Bills. com offers consumers free mortgage quotes and tools to help you find, learn, and save.
Video Transcription;
"Hi, my name is Ethan Ewing, and I am the president of Bills. com. Today I want to talk to you about a very common mortgage term, PMI or Private Mortgage Insurance, for anybody that’s going to buy a house and is putting less than 20% down as a down payment you will be required to pay PMI, it just comes across just as a monthly premium, you pay it each and every month, it usually goes into your mortgage payment.
What PMI does is there is no benefit to you as a borrower, even though you are paying it, it is a benefit to the lender, the bank, the servicer whoever owns you a loan, in the event that you default. The reasoning behind it is in situation where a borrower or a buyer is coming and not bring a lot of money – not investing lot of money in that house, the bank wants to make sure they are covered in the event that you default. So, keep in mind, once you get to that 80% level, really once you get to 78% , you have built some equity in your house over time then the bank is forced or required by the government to drop that coverage and they will send you a notice saying that you don’t need to make this payment .
Hope that helps and we will see you next time."
The Latest on Mortgage Rates
No surprise that mortgage rates fluctuate. If you are thinking about purchasing a home or maybe considering refinancing your current mortgage, then you want to be up to date on mortgage rates.
Mortgage rates September 13, 2023
According to Freddie Mac, the 30-year mortgage rate for the week of September 13, 2023 is 7.18%. This represents a 6 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
According to Freddie Mac, the 15-year mortgage rate for September 13, 2023 is 6.51%. This is a 1 basis points decrease from last week’s rates.
Understanding the impact of mortgage rates on your finances
When it comes to determining your monthly payment, mortgage rates are a key factor to consider. Here are the avergage interest rates (APR) for August 17, 2023 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- 30-year conventional loan is 7.27%
- 15-year conventional loan is 6.28%
Based on the provided rates, a $279,082 30-year mortgage would result in a monthly payment of $1,908. Alternatively, a 15-year mortgage would require a monthly payment of around $2,397.
Experience a smooth mortgage process: Shop around and get pre-approved today!
Shopping around for mortgages and getting pre-approved can make your home-buying or refinancing process easier. Ready to take the plunge? Check Out mortgage rates now for the best options available.
