What Is Private Mortgage Insurance
Private Mortgage Insurance, or PMI as it is commonly referred to, in simple terms, is an insurance policy that is added to your monthly mortgage payment which protects and pays out to your mortgage company should your house go into foreclosure.
PMI is applicable when there is less than 20% down payment on the purchase of a home. Like most insurance policies, there is an upfront fee and monthly fees. Oftentimes, you make these monthly insurance payments until your loan balance is 78% of the home's value, which could take at least 5 years. So, for example, if your monthly PMI is $150, that's $9000 of your hard earned money that does nothing for you!
PMI also reduces the amount of house you can qualify for as it is a monthly expense, like your car payment, that is calculated into your debt-to-income ratio to determine your maximum purchase price.
But now there is a BETTER WAY!
In the NO MONEY DOWN HOMES program, there is no PMI payment, no closing costs or fees, and a 30-year FIXED rate.
Sound too good to be true? Well it is too good AND it is true!
Let's talk so we can figure out the best plan of action to help you get into the program and into a home you can afford to keep for years to come.
Peter is a 15-year veteran of the residential, investment and commercial real estate industries and has earned notable distinction as one of Central Florida’s leading real estate professionals, defi....