How Private Mortgage Insurance Fits into the Home Buying Process
Private mortgage insurance is called PMI in the housing and insurance industries. PMI is arranged by lenders and provided by private insurance companies. This is required for home mortgage borrowers with conventional loans and down payments that are less than 20 percent of their home’s purchase prices. When refinancing your traditional loan with equity that is less than 20 percent of the value of your property, PMI may also be required.
If you are in the market for a new home, Botaniko Weston pre-construction homes are perfect for families and individuals. In fact, these contemporary abodes feature spacious interiors, trendy exteriors, and elements of light – air – modern design. With picturesque backdrops and scenic imagery, Botaniko eloquently combines elements of nature and green options into their homes. As a potential homebuyer, you can also design and decorate your pre-construction house as needed to meet your lifestyle and living needs.
How is Private Mortgage Insurance paid for?
There are different ways to pay for PMI. In fact, most lenders do offer multiple options for borrowers. Before agreeing to a specific mortgage, check to see which choices lenders offer that will make your life easier. The most common method of payment for PMI is monthly premiums. The premium is simply added to your mortgage payment for added convenience. This means you pay one sum per month without the hassle of two separate payments.
Here are some more aspects of PMI to keep in mind:
- Look for your premium amount on the Closing Disclosure and Loan Estimate sections. You will see a Loan Estimate when applying for a mortgage. This allows you to weigh your options and agree or move on to another provider.
- PMI may also be assessed with a one-time up-front premium amount at the closing.
- If you make an up-front payment on your monthly mortgage payment, you may not be eligible to receive a refund on the premium. Make sure to check with your lender if early PMI payments can be made without penalties.
- Lenders may or may not offer multiple payment options. Speak with your loan officers or servicer to schedule a payment schedule that works for you.
The Benefits of Private Mortgage Insurance
While private mortgage insurance may have some drawbacks, it does allow potential homebuyers to access the housing market more quickly. Similarly, more lenders are willing to approve mortgages since PMI protects them against loss if a borrower defaults. Again, homebuyers will have down payments of less than 20% across the board. This too is a crucial benefit for them since it allows for faster home buying and closings in most cases.
PMI may also be great for first-time homebuyers that do not need second mortgages. This expands the opportunities for homeownership with cost-affordable down payments. Similarly, low-interest rates and affordable home prices make it great for new buyers to enter the market. PMI allows these buyers to get homes sooner with better and safer options for lenders. If looking for a new home with all the latest amenities and features, Botaniko Weston is simply a great place to work, live, and raise a family in.
Botaniko Weston for First-Time Homebuyers
Botaniko Weston is perfect for first-time homeowners and families. In fact, it’s truly unlike any other living experience. For one, your elegant and lavish home is designed with convenience and contemporary features in mind. Similarly, the area is blanketed by lush rolling hills and trees, along with plenty of bicycling – walking – jogging –hiking paths. While serene and tranquil in nature, Botaniko is also full of energy and life at every corner. Here are some of the amenities you and yours will love at Botaniko:
- 121-acres of beautiful, open land and green spaces.
- Private spaces for residents to enjoy picnics and quality time with friends and loved ones.
- Plenty of nautical and aquatic activities; fishing, canoeing, swimming or just lounging around.
- Botaniko in Weston, FL, features smart kitchens, WI-Fi, central heating/cooling, hardwood flooring and plenty of room with spacious closets and more.
- Botaniko is a gated community that is truly the perfect places to work and raise a family in.
- These luxury homes are not far from schools, shopping, and fine dining and entertainment.
- Botaniko Weston is considered one of the best places to live in America.
- Botaniko Weston pre-construction homes truly rival the finest 5-star resorts and hotels. In fact, these units are in great demand – and continue to attract domestic and international investors.
For more information on pre-construction homes at Botaniko Weston, simply contact us today or visit our website.