23 Aug 2023
By Mark Feder

3 Ways To Avoid Mortgage Insurance

Mortgage
When you are buying a home, you may run into a number of hurdles to complete the purchase. One of the items that you may be asked to purchase is called private mortgage insurance, often shortened to PMI. This is a unique insurance policy that your lender, such as the credit union or bank, may ask you to buy in order to protect themselves. In this insurance policy, the bank protects themselves against losing money if you end up defaulting on your loan. Unfortunately, if you are asked to purchase PMI, this will increase your monthly mortgage payment. Therefore, most…
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25 Apr 2023
By Mark Feder

How Do I Get Rid of PMI?

Mortgage
How to Get Rid of PMI? PMI (Private Mortgage Insurance) is a type of insurance that lenders may require borrowers to pay if they have a down payment of less than 20% of the home's purchase price. The purpose of PMI is to protect the lender in case the borrower defaults on the loan. However, once you have paid off enough of your mortgage or your home has appreciated in value, you may be able to get rid of PMI. Here are some ways to do so: Pay down your mortgage: If you make extra payments on your mortgage or…
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23 Jun 2020
By Mark Feder

What Is Mortgage Insurance?

Mortgage
When it comes to putting a down payment on a house, most lenders are going to ask for 20 percent; however, some lenders will be willing to accept a smaller down payment in exchange for something else. That something else is usually mortgage insurance. If a lender says they are asking for mortgage insurance, which is also shortened to PMI, it is important for everyone to know what this means. An Overview Of PMI PMI stands for private mortgage insurance and is usually required if the borrower is putting down less than 20 percent. The lender will usually go out…
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21 Feb 2020
By Mark Feder

FHA Down Payment Requirements: Homeownership Without A Big Savings Account

Mortgage
Buying a home for the first time can be a challenge. One of the tools created to help people buy a home for the first time comes in the form of FHA loans. There were loans that were supported by the Federal Housing Administration (FHA). They can require a down payment that is as low as 3.5 percent.  FHA loans are significantly different from traditional mortgage loans. Those who have purchased a house before have likely heard that the average down payment is closer to 20 percent of the value. This can make it hard for someone to buy a…
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