Your new post is loading...
See how to avoid paying private mortgage insurance. There are ways not to pay PMI including putting 20% down, a piggyback loan, getting LPMI and others!
|
Scooped by
Bill Gassett
October 30, 2016 9:21 AM
|
Scoop.it!
Bill Gassett's comment,
December 22, 2016 7:35 PM
Thanks for the scoop @Barry Lieberman
Sign up to comment
When home buyers set out to purchase their first property they typically will meet with a mortgage broker and get pre-approved for a loan.
Excellent mortgage brokers will explain all the costs and fees associated with obtaining a mortgage. One of the things borrowers will quickly here about is what's known as private mortgage insurance or PMI.
Private mortgage insurance is a fee lenders charge when a borrower does not put down at least a 20 percent down payment. The fee or insurance as it's known protects the lender in the event of a default.
From a buyers standpoint, this is an unnecessary fee that drives up the cost of owning a home. For this reason, buyers will often ask how to avoid paying PMI. Is it possible to avoid paying private mortgage insurance when you don't have a 20 percent down payment? It is sure is possible!
In the article, you will see some of the ways home buyers can avoid having to pay private mortgage insurance. Keep in mind it may not make sense to not pay PMI.
Each individual borrower should go over their finances in detail with their mortgage broker. A complete analysis should be done to see how paying and not paying private mortgage insurance affects the total cost of the loan.
You may find that paying the PMI makes more sense. Also keep in mind that you can get rid of your private mortgage insurance once you have 80 percent equity in your home.
Lenders are also required to automatically remove PMI once an owner has 78 percent equity.
Take a look and if you find this article helpful, please consider scooping it or sharing to your social networks.