Low-Down-Payment Programs, Renovation Loans & Down Payment Assistance OptionsShould You Avoid Private Mortgage Insurance
January 12, 2025 by Leave a Comment
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 for someone who’s 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. [Read more…]
Should You Follow Dave Ramsey’s Advice on Mortgages?
September 29, 2021 by 2 Comments
Dave Ramsey is someone a lot of people follow for financial advise. Lately he’s been showing up A LOT in my Facebook stream pushing his thoughts on mortgages, home ownership and credit. Some of his ideas, I don’t totally disagree with. In fact, I shared a post that came from his group encouraging people to continue to pay rent and make their mortgage payments during the pandemic if at all possible (ie nothing is for free). However, I don’t support what he instructs his followers who are considering buying a home and I also have an issue with anyone who pushes their “team of vetted real estate agents”…I would be really surprised if there is not some sort of financial relationship associated with this referral arrangement.
Let’s take a look at what he encourages his followers to do with regards to buying a home or getting a mortgage. [Read more…]
Private Mortgage Insurance Pricier for Single Borrowers
August 6, 2018 by Leave a Comment
Private mortgage insurance is required on conventional mortgages when there is less than 20% equity on a property, when the loan-to-value is greater than 80%. Private mortgage insurance (pmi) that is paid monthly automatically drops off the mortgage payment once the mortgage balance reaches 78% of the original loan amount. Private mortgage insurance premiums are intended to be risked based. The more equity or down payment on a home and the higher your credit scores are, the lower the premiums tend to be. [Read more…]
