PMI-Private Mortgage Insurance
How to Avoid PMI With Less Than a 20% Down PaymentThe dreaded PMI (Private Mortgage Insurance) is required by lenders to borrowers who do not have at least 20% of the purchase price as a down payment. Depending on your loan balance, this PMI payment can range from an extra $50 to $300 in addition to your mortgage payment. Yikes! Have you ever heard of "Lender Paid Mortgage Insurance?" Lender Paid Mortgage Insurance (LPMI) is where the lender doesn't require PMI in exchange for a higher interest rate. Now, who would want to pay for a higher interest rate? Well, if you are concerned about not exceeding a particular monthly payment, you may want to consider this option. |