If you’re buying a loft or condo for sale in DTLA, you’ll probably need a mortgage loan to do it. Most people do.
And you may also need to pay for private mortgage insurance.
But what is private mortgage insurance, and why would you have to buy it?
What is Private Mortgage Insurance?
Private mortgage insurance, commonly called PMI for short, is a type of insurance your lender may require you to buy. Lenders typically make people who are buying a home with less than 20 percent down purchase PMI.
It’s an insurance payment that covers your lender if you default on your payments. If you fail to make payments, the insurance company helps cover the lender’s losses.
How Long Do You Have to Pay for PMI?
You won’t have to pay for private mortgage insurance forever. Typically, you can stop paying it when you actually own 20 percent of your home.
How Much Does PMI Cost?
Usually, PMI costs between 0.05% and 1% of your total loan amount on an annual basis.
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.
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