If you make adown paymentof 20% or more when buying a home, you don’t need to pay for PMI. That’s assuming you take a conventional mortgage rather than an FHA or VA loan — more on that shortly. When you take out a mortgage loan, the lender offers you a loan up to a certain...
6. You Can Stop Paying PMI. Most lenders require private mortgage insurance until you reach 20% equity in your home. The sooner you get 20%, the sooner you canstop paying PMIand put that money to use better. PMI offers no benefits to homeowners. As long as you continue to pay private...
Private mortgage insurance (PMI) is basically an insurance that the lender uses as protection in the event that you default on your loan. It’s common for loans with less than a 20% down payment, since those are viewed as a “riskier” investment by the lender. If you are required to ...