WHAT IS PMI?
PMI stands for Private Mortgage Insurance. PMI is insurance that a lender may require for your home loan if the lender feels you are a risk. In other words, the insurance is for the lender (i.e., a bank) or a private lender (i.e., a broker). It is insurance designed to protect the lender. You, the borrower, pay for the insurance, in order to protect the lender.
PMI is often required on home purchases with a low down payment. Usually when the down payment is less than 20% of the price or appraised value of the home. “Typical rates are $55/mo. per $100,000 financed, or as high as $150/mo. for a typical $200,000 loan. (“Cost of Private Mortgage Insurance”). FHA requires you to have PMI throughout the life of the loan!
If you purchased your home with less than a 20% down payment then you are more than likely paying PMI each and every month. Many people are paying $125.00 + a month! I think you would agree, that’s money you could easily spend somewhere else. So, your next question should be, “Can I get rid of my PMI? or “How do I stop paying PMI?”
HOW TO GET RID OF PMI
If you would like to get rid of your PMI, and I don’t know anyone who wouldn’t, here are 4 ways or tips to stop paying PMI now:
1. You may get rid of it once you payoff 20% of the home… Once you’ve made payments on your home and have 20% equity then it is ridiculous to keep paying PMI. Contact Ryan and get that PMI taken off your account today. Do it today and stop wasting money.
2. If you haven’t paid off 20% of your home yet you’ve made significant improvements, it is possible that you have increased its value and now have 20% equity in your home.
3. The market has improved, you may be able to get out of the monthly PMI because the value of your home has gone up.
4. With as little as 5% equity, you may be eligible to get out of the monthly PMI.
THE BEST TIP FOR GETTING OUT OF PMI
Of course, the best way to not pay PMI is never to sign a loan that requires it in the first place. Why should you pay for insurance that isn’t even designed to protect you? DON’T PAY MONTHLY PMI. Instead, get a home loan with integrity from Ryan Bazzell at HOME LOANS with INTEGRITY.
I can get you approved for a home loan with no monthly PMI even without 20% down. That’s right!
In fact, I’m confident I can get you into your home with as little 5% down and NO monthly PMI. Whether its a new home or a refinance.
Not only that, but our loans have the lowest fees and closing costs than any in the business. Call me today and lets see what HOME LOANS with INTEGRITY can do for you.
LETS GET STARTED
Get Approved Today! We make the process of securing a mortgage simple and straightforward by offering you the latest in financial products that enable you to make sound financial choices. Begin online application process and start working with our amazing team today.