PMI Changes In 2013 - What Changes Are Happening And Is It That Scary?
There's been a lot of "noise" talking about the changes to PMI (MIP) in 2013. However, it's not all scary stuff like your lender might be telling you. We thought we'd break it down for you. Before we do though, let's go over PMI Changes(or MIP) so you know what it is. Here's the cliff notes:
- PMI or MIP stands for Private Mortgage Insurance or Mortgage Insurance Premium. The terms are not equal, but they will unfortunately be used interchangeably.
- PMI allows home owners to purchase with less money down. The insurance premium they pay as part of the loan is what makes the investment from bank more secure. Therefore, PMI is a good thing from that perspective.
- PMI is