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By admin, June 9, 2011 6:03 pm

Conventional Loan vs FHA Loan Conventional and FHA Loans at a glance... Conventional Loan FHA Loan 20% down 3.5% down PMI not required (unless <20% down) PMI required Slightly lower interest rate (credit dependent) Slightly higher interest rate (credit dependent) Better terms require higher credit score Better terms to those with lower credit scores Financed MIP (if <20% down) Up Front MIP (Mortgage Insurance Premium) Conventional or FHA : Which loan ...

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By admin, June 4, 2011 8:36 pm

What is PMI?   PMI (Private Mortgage Insurance) is insurance that protects the lender from a loan default.  PMI is required when a homebuyer does not have a down payment that is at least 20% of the home’s purchase price.   While the homebuyer is the purchaser of PMI (Private Mortgage Insurance), the beneficiary of PMI is the ...