✨ How to Avoid Paying Private Mortgage Insurance (PMI) ✨
PMI can add hundreds of dollars to your monthly mortgage payment—but with a little strategy and preparation, you can skip it entirely! Here’s how to avoid this extra cost and save more on your homeownership journey:
✅ Save for a 20% Down Payment
The simplest way to avoid PMI is to put down at least 20% of your home’s purchase price. While this might take longer to save, it can significantly reduce your long-term housing costs.
✅ Explore Lender-Paid PMI Options
Some lenders offer to cover your PMI in exchange for a slightly higher interest rate. While you’ll pay a bit more in interest, this can lower your monthly payment and eliminate the need for PMI.
✅ Look into VA Loans
VA loans are a fantastic option for eligible veterans, active-duty service members, and their spouses. With zero down payment and no PMI, VA loans make homeownership much more affordable.
✅ Consider Piggyback Loans
An 80-10-10 loan (80% first mortgage, 10% second mortgage, and 10% down payment) can help you avoid PMI. This approach splits the loan into two parts, so you’re only paying mortgage insurance on a smaller portion.
✅ Shop Around for Lenders
Not all lenders require PMI with smaller down payments. Some offer unique programs that waive PMI for borrowers with good credit and stable financials. Shopping around can uncover these opportunities.
💡 Pro Tip: Work with a Mortgage Expert
Navigating your loan options can feel overwhelming, but working with an experienced mortgage professional can simplify the process. I’ll help you explore every possibility to find the best fit for your financial goals.
Ready to Save on Your Mortgage?
Let’s make your dream of homeownership a reality—without the extra costs of PMI. Reach out today to discuss your options!