options of financing dental work

After paying several thousands of dollars on the root canals on my upper teeth, my dentist told me that they had to be pulled. He told me that the dentist that did the work didn't do it properly and that all of the teeth were infected. After I collected myself, we started discussing the cost of the extraction procedure and the cost of the dentures. I knew I couldn't pay for all of that out of my pocket and he explained the dangers of allowing dental infections to fester. I quickly learned about financing dental procedures. If you are in a similar situation, go to my site to learn about your options of financing dental work.

What is Private Mortgage Insurance and Must You Pay It?


If you need to get a mortgage to make a home purchase, you might want to talk to a broker. A mortgage broker is a business that helps people get loans, and they can usually help almost anyone find a loan. One of the broker's goals is to help people find the best loans based on their credit and financial situation. When getting a loan, the broker might talk to you about private mortgage insurance (PMI). Do you know what this is? If not, continue reading to learn what it is and whether you must pay it with your loan.

The Definition of PMI

PMI is an insurance product that lenders sometimes require. They do not always require that borrowers buy it, but they do in some cases. When you buy PMI, you purchase an insurance product that protects the lender. Suppose you experience financial problems a few years into the loan and cannot pay your mortgage payments. Your lender can foreclose on your home, which means they take the house from you and sell it to someone else. If the lender loses money when doing this, they can file a claim with the insurance company that sold you the PMI policy. The insurance company will then pay your lender the amount of the claim, so your lender loses nothing. As you see, PMI protects the lender but does not protect you. Yet, you must pay the policy premiums, and these premiums are on top of your mortgage payments.

Loans That Require PMI

Most borrowers do not like paying PMI, yet they will if the lender requires it. You will likely have to pay PMI if you get a conventional loan, but you only pay it if you borrow more than 80% of the home's purchase price. Therefore, you can avoid paying PMI with a conventional loan by offering a down payment that is at least 20% of the home's purchase price.

Other loan types, such as FHA and VA loans, do not require PMI. These loan types do charge mortgage premiums, though, which are like PMI payments. With a VA loan, you pay a one-time funding fee for the loan. With an FHA loan, you pay a mortgage premium for as long as you have the loan. If you have questions about PMI or Home Buying Loans, talk to a broker. A broker can explain loan questions to you and help you find the best loan.


25 September 2020