Refinance rates, a quick primer

Fortunately, lenders today offer many low down payment mortgages. When deciding on a mortgage plan to go for however, you should determine if 20 percent is indeed the standard rate. The fact is that most mortgage lenders do require you to make the 20 percent down payment at the minimum. If you put down less than 20 percent, most lenders will require you buy Private Mortgage Insurance (PMI). The cost of PMI is usually equivalent to one half of 1 percent of the selling price of the property, and is intended to protect the mortgage company if you are unable to pay back the loan.

06/28/09 5

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