Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase.
This morning I sat down with Mark Waterman from Great Western Bank. Listen as Mark explains Private Mortgage Insurance, also known as PMI. You can reach him at 605.627.0602 or Mark.Waterman@GreatWesternBank.com His office is located at 1302 6th St., Brookings SD 57006 or on the web at www.GreatWesternBank.com
Private Mortgage Insurance
- Good morning everybody.
- I'm ready.
- You start smirking here and made me laugh. Good morning everybody, Shane here from the Brookings Home Team, powered by Century 21. We're having a great time this morning already. It's 8:15, Mark Waterman from Great Western Bank here to talk about a Monday morning mortgage tip. Before we do that though, let us know as you guys jump on, give us a heart, give us a thumbs up. If you have any questions for us, we can try to answer them here and now depending on time. Or just message us in the bottom, on the sides, or up top, wherever your device allows you to do that. Feel free to do that and we'll try to answer that next episode. So, what do you got Mark?
- So today's tip is private mortgage insurance. So, when you buy a house, if you put down less than 20% there will be private mortgage insurance, more than likely. The more that you put down, the lower that private mortgage insurance is generally. So if you're putting 15% down, compared to 5%, you will pay less private mortgage insurance, as a percentage. Okay, so again kinda the misconception of you have to put 20% down, not entirely true. If you don't put 20% down, private mortgage insurance probably will exist. So, to touch on private mortgage insurance on a refinance with today's rate environment, lower rates. So if you purchased a house with Shane in the past, and gotten a mortgage loan on that. I guess, you don't have to purchase it with Shane, even when you're looking at a refinance, but--
- It's a good idea to.
- Correct, but on that refinance. If your house has appreciated. Say you bought a house two years ago, and the house has appreciated. And you've paid some down on your loan amount, you could be in a different in loan to value category. So if you're going to refinance, that private mortgage insurance could be cheaper as well as the insurance rate, or as well as the interest rate. So, you could save money on kind of both ends. At the end of the day if you have no idea what private mortgage insurance is, and how it kind of exactly works, give me a call and we can sit down and go over some examples.
- Private insurance, I mean, even when you just start out. I'm guessing here, can it be like a $100 extra?
- Yeah, absolutely. You know and depending on credit score, and some of the other factors, absolutely. It can be over $100, so might be something, like I said, kind of worth sitting down, putting a pencil to.
- And with today's rates right now. It's like free money guys. Are they predicting that they go down a little bit more?
- I have heard that, yup, yup. I have heard that, but it's, geez rates are good. I know my rates personally get released at 10 this morning. So I'll have a good idea then, so if you have any questions as to what they are just give me a call.
- You bet, and you know, obviously my job is to help you buy a home or sell your home, but sometimes a refinancing is your best option and talk with Mark on that too. I mean obviously he could save you hundreds of dollars possibly, by refinancing, if you're not even thinking of buying or selling here down the road. So, that alone could save you lots of money and put more cappuccinos in your tummy, I guess.
- There you go, exactly.
- If you have any questions again, like Mark said. Let him know, again, his information is on the top, on the bottom, on the sides. Where ever your device allows you to see that. Just reach out to him and he'd be happy to talk to ya. He does have a cell phone number, that he is certainly always ready to answer there.
- Yeah, somebody's calling right now.
- Oh, shoot-- Yeah they're listening! Anyway we better get going here. That's the Monday morning's mortgage tip. We'll be back next Monday with a new one. Thanks for watching guys. Have a great week, we'll see you later.
- Thank you.
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