What is PMI?
Private mortgage insurance, also called PMI, is a type of mortgage insurance you might be required to pay for if you have a conventional loan. Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan.
Can i get this waive?
Yes, with a down of at least 20%
How do i get rid of in ?
Pay down your mortgage
Request PMI cancellation
Refinance
Reappraise
What is Escrom?
Escrow resembles a savings plan set up to accumulate money to pay annual real estate taxes and property insurance when those bills come due. The lender or mortgage holder sets up escrow accounts and collects one-twelfth of the estimated annual tax and insurance fees each month.
Can i get this waive?
Yes, with a down of at least 10% on conventional loan
Why would i do this?
Reduce Closing Cost
Reduce monthly payments
What are the risk ?
The main risk here is if you did not save for the taxes and insurance, you could potentially default. This option is only good for those that are very good at budgeting and saving.
