When you buy your first home, it can be a very confusing time. However you will also be excited about getting into your new home. There is no better feeling like being about to call a home your own and do whatever you want with it.
You can do whatever you want with your home when you own it and this is why the type of mortgage you receive is so important.
Life is going to happen no matter what we do to try and stop it. Sometimes we are not able to make our payments all the time. This is where the private mortgage insurance is going to come into play.
When you first purchase your home, some lenders will expect you to pay a larger sized down payment of at least 20% or get some type of insurance loan protection called private mortgage insurance.
This type of insurance coverage will protect the lender in case you are not able to make the monthly payments. This insurance does not take care of anything else.
If your home would burn down or something else would happen you better make sure that you have some other type of homeowner’s insurance. This is only going to take care of payments if you are not able to afford them.
If you do not need it, private mortgage insurance is not something that can hurt you. No job is guaranteed to always last and if you are not able to make your payments, you will not have to worry about losing your house. It is always better to be on the safe side.