If you’re buying a loft or condo for sale in DTLA, you know that you’ll need to come up with a down payment – but what happens if it’s not the full 20 percent most lenders want?
You’ll have to buy mortgage insurance. But what is mortgage insurance, and how much will it cost you?
What is Mortgage Insurance?
Mortgage insurance helps assure your lender that if you can’t make your payments, the lender is still going to get its money. It covers you until you’ve put 20 percent of your own money into the home, whether that’s next month or in several years.
The catch: You have to pay for it.
It’s different from regular insurance, too. You pay the premiums, but you’re not the beneficiary – your lender is.
You have to buy private mortgage insurance if you put down less than 20 percent on a home. That’s usually just the way it is, with one exception: When you take out a VA loan, you don’t have to put anything down and you don’t have to pay for PMI. The VA guarantees part of your loan so you don’t have to worry about it.
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale