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For consumers purchasing or refinancing a home with less than 20% equity or
20% down, there’s a little-known fee that will apply to the total mortgage
payment, effectively inflating the monthly outlay.
Mortgage insurance is paid by the the homeowner to insure the lender against future mortgage payment default. Mortgage insurance, also dubbed as PMI (an acronym for private mortgage insurance), can easily be several hundred dollars per month depending on the loan program. This added premium makes the cost of homeownership more expensive. However, there is a way to cut your mortgage payment using single-pay mortgage insurance
Mortgage insurance is paid by the the homeowner to insure the lender against future mortgage payment default. Mortgage insurance, also dubbed as PMI (an acronym for private mortgage insurance), can easily be several hundred dollars per month depending on the loan program. This added premium makes the cost of homeownership more expensive. However, there is a way to cut your mortgage payment using single-pay mortgage insurance
Read more: http://www.foxbusiness.com/personal-finance/2013/07/18/little-known-way-to-reduce-your-mortgage-payment/#ixzz2ZujKoSvX
