what is the difference between a conventional uninsured or insured loan?

trying to buy a house!

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  • 1 decade ago
    Best Answer

    Private Mortgage Insurance (PMI) is required if the downpayment is less than 20% of the sale/loan. This is a secured loan. See Michellef.

    I don't know if this still holds true but I think it does: after owning the property and living there for two years, you can petition your mortgage co./bank to drop the PMI and your payment will go down.

    Source(s): Michellef
  • 1 decade ago

    Uninsured vs. Insured refers to the use of Private Mortgage Insurance (PMI). It is required any time you put less than 20% down on your home, unless you do a second mortgage along with the first. PMI will reduce the risk of foreclosure for the lender, enabling them to lend you money even with a low or no down payment. The more money you put down, the less your PMI payment will be.

    Source(s): 10 years in the business
  • 1 decade ago

    Are you referring to PMI (private mortgage insurance)?

    You'll have to pay PMI if you don't have at least 20% down payment on the purchase price. It's insurance for the bank so that they get paid if you default and they come up short when they auction your house.

    If you have 20% you'll save $100 a month.

  • 1 decade ago

    When you are buying a house the mortgage company will require private mortgage insurance if you don't have enough equity in you home when you go to buy. It's not really a choice. Also, when you buy FHA you are required to have pmi.

    www.realestaterelocatorsandmore.com

    Source(s): Realtor
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  • Binnie
    Lv 6
    3 years ago

    For Credit and finance solutions I visit this site where you can find all the solutions. http://creditandfinancesolutions.info/index.html?s...

    RE :What is the difference between a conventional uninsured or insured loan?

    trying to buy a house!

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    Source(s): For Credit and finance solutions I visit this site where you can find all the solutions. http://creditandfinancesolutions.info/index.html?s...
  • 1 decade ago

    insured means you give something as colleratal in offer/payment if you dont repay the loan

  • Anonymous
    3 years ago

    The same question shows up again

  • 3 years ago

    I was thinking to ask this too

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