Podcast
Questions and Answers
What is the main purpose of Private Mortgage Insurance (PMI)?
What is the main purpose of Private Mortgage Insurance (PMI)?
- To protect the lender against loss from a default (correct)
- To protect the borrower against loss from a default
- To decrease the borrower's down payment
- To increase the borrower's monthly payments
What is the impact on the borrower if PMI is required?
What is the impact on the borrower if PMI is required?
- Decreased down payment amount
- Increased property tax rates
- Higher monthly mortgage payments (correct)
- Lower interest rate on the loan
How does a lender-paid MI program differ from traditional PMI?
How does a lender-paid MI program differ from traditional PMI?
- The borrower pays the MI premium directly to the lender
- The MI premium is waived for borrowers with a credit score above 700
- The loan amount is reduced if MI is lender-paid
- The lender covers the MI costs, possibly resulting in a higher interest rate (correct)
When does PMI typically end for borrowers?
When does PMI typically end for borrowers?
Why do lenders often require PMI for borrowers with less than a 20% down payment?
Why do lenders often require PMI for borrowers with less than a 20% down payment?
What role does PMI play in facilitating home ownership for borrowers?
What role does PMI play in facilitating home ownership for borrowers?
What determines the maximum loan amount for an FHA-insured loan?
What determines the maximum loan amount for an FHA-insured loan?
What type of premium is required for FHA-insured loans?
What type of premium is required for FHA-insured loans?
What is the primary funding source for the FHA's single-family mortgage insurance program?
What is the primary funding source for the FHA's single-family mortgage insurance program?
Which of the following is a loss mitigation option for FHA loans?
Which of the following is a loss mitigation option for FHA loans?
How does a higher down payment affect the private mortgage insurance (PMI) rate?
How does a higher down payment affect the private mortgage insurance (PMI) rate?
Which statement best describes a conforming loan limit?
Which statement best describes a conforming loan limit?
What is the purpose of a VA-Guaranteed Loan?
What is the purpose of a VA-Guaranteed Loan?
What is the significance of the Loan-to-Value (LTV) ratio?
What is the significance of the Loan-to-Value (LTV) ratio?
What is a jumbo loan?
What is a jumbo loan?
