PMI Insurance in Florida
A Quick Guide to PMI Insurance in Florida: From Who Needs It to How Much is Private Mortgage Insurance in Florida
If you’ve recently decided to buy a home in Florida, you might have heard about the need to have private mortgage insurance. But who actually needs this? Does this apply to everyone? How much is private mortgage insurance in Florida, anyway?
Don’t worry; we got the answers to your questions right here.
Do I need private mortgage insurance when buying a home in Florida?
Technically, Florida state regulation only requires homebuyers to purchase private mortgage insurance if the homebuyer decided to buy it using a whole loan program. If this does not apply to you, you do not need to purchase private mortgage insurance when you buy a house in Florida.
However, if the terms of your mortgage include a provision where you are required to purchase private mortgage insurance, then you would have to abide by those terms. Generally, most mortgage lenders tend to request this insurance for borrowers who only submitted a downpayment of less than 20% of the house price.
Do I need PMI In Florida when buying a home?
Technically, Florida state regulation only requires homebuyers to purchase private mortgage insurance if the homebuyer decided to buy it using a whole loan program. If this does not apply to you, you do not need to purchase private mortgage insurance when you buy a house in Florida.
However, if the terms of your mortgage include a provision where you are required to purchase private mortgage insurance, then you would have to abide by those terms. Generally, most lenders tend to request this insurance for borrowers who only submitted a downpayment of less than 20% of the house price.
What does private mortgage insurance cover?
In general, private mortgage insurance is meant to cover a certain percentage of your house’s total loan. It is intended to protect lenders from bearing the entire brunt of the financial loss that occurs if you default on your mortgage loan.
Do I need to pay private mortgage insurance for the entire duration of my mortgage?
Luckily, no! If you purchased your home in Florida, you only need to pay private mortgage insurance until your house equity has reached 78%. This is in accordance with the Homeowner’s Protection Act of 1998.
Private mortgage insurance can be costly, but if you prepare well and choose the right provider, the process can be quite easy to navigate. Remember to check the terms of your mortgage before deciding to commit to any private mortgage insurance plans.
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