“Paying Private Mortgage Insurance Upfront”
A conventional home loan requires private mortgage insurance (PMI) to cover the lender’s additional risk when a down payment is less than 20% of the purchase price. Many homebuyers faced with paying PMI don’t realize that it can be paid upfront, at closing, in one lump fee. This isn’t an option for everyone, however, since it requires extra cash funds on hand at closing, something many first-time buyers don’t have. For those with the money, it may be a choice between lower monthly payments and a rainy-day fund for home-related expenses and emergencies. Some buyers may be able to ask the seller for a credit toward their closing costs, which can help cover part or all of a PMI premium.
PMI insurance and other financial issues are all to be considered when buying a new home. These are matters you’ll want to be completely familiar with before making your final decisions. We’ve made our years of experience work for hundreds and hundreds of happy buyers and sellers in our community, now let them do the same for you. Don’t go it alone – we’re easy to find and fun to work with.
“OUR SUCCESS HAS BEEN BUILT ONE SATISFIED CUSTOMER AT A TIME.”
