What is PMI And When Do You Need It? - Money Tip Tuesday

<p style="text-align:left;">Buying a home is a huge step in your life. If you’re new to the homebuying process, you’re probably learning a bunch of new terms and information. One of those terms you’re going to hear is PMI and if you’re curious about what it is and how it works, keep listening. </p> <p style="text-align:left;">Links: </p> <ul style="text-align:left;"><li>NerdWallet PMI Calculator </li> <li>Triangle's Mortgage Calculator</li> <li>Contact a Mortgage Originator </li> <li>Follow our <a href='https://www.facebook.com/pg/MakingMoneyPersonalPodcast/posts/?ref=page_internal'>Facebook</a>, <a href='https://www.instagram.com/makingmoneypersonal/'>Instagram</a> and <a href='https://twitter.com/TCUpodcastMMP'>Twitter</a> pages!</li> <li>Learn more about <a href='https://www.trianglecu.org/home/home'>Triangle Credit Union</a></li> </ul> <p style="text-align:left;">Transcript:</p> <p style="text-align:left;">Welcome to Money Tip Tuesday from the Making Money Personal podcast. </p> <p style="text-align:left;">When you’re looking into the costs of buying a home, you’re likely familiar with the interest rate, downpayment and even closing costs. But how familiar are you with the PMI that might be included in your monthly payment?  </p> <p style="text-align:left;">If you’re curious about what PMI is and whether or not you’ll have to pay it, here’s a little explanation.  </p> <p style="text-align:left;">PMI stands for private mortgage insurance that protects the mortgage lender if you stop making payments on the loan. If you have less than 20% of your own money into the transaction, then the Credit Union or lender will get PMI on the loan. If you’re able to put 20% or more down then you won’t have to pay PMI at all.  </p> <p style="text-align:left;">PMI is most often factored right into your mortgage payments which means you don’t have to make it a separate payment each month on top of your mortgage. In some cases, certain lenders might provide you a different option when it comes to paying PMI but most lenders req