Recently I was invited to contribute to an article for U.S. News on How to Avoid PMI on a Mortgage with Less Than 20% Down by Gina Freeman. The article includes various strategies on how to avoid private mortgage insurance. Private mortgage insurance is typically required when someone is putting down less than 20% for a home purchase or if someone has higher than an 80% loan-to-value if they’re refinancing a property and are using a conventional mortgage.

There are many ways private mortgage insurance (pmi) can be paid for, including a lump sum “single premium” as a closing cost or as part of the monthly mortgage payment. There is also “split premium” which is a combo of a single premium and monthly and lender paid. The seller may even be able to contribute towards private mortgage insurance if negotiated in the real estate contract and the loan meets required guidelines.down less than 20% for a home purchase or if someone has higher than an 80% loan-to-value if they’re refinancing a property and are using a conventional mortgage. [Read more…]