How Do You Avoid Paying Private Mortgage Insurance?
When I first got my home loan, private mortgage insurance accounted for $60 of my $730 monthly payment. Like many first time homeowners, I didn’t even realize I would be paying that much extra each month until I got my first mortgage statement. It irked me to write the check each month knowing that $60 was being wasted. I got rid of my PMI as soon as I could, and vowed never to acquire a mortgage with PMI again. Here’s how to avoid paying private mortgage insurance. Pay a down payment of 20 percent of your home’s value. If you have at least this much as a down payment (and it may very well be worth saving for your down payment for a few extra years in order to have enough) you will avoid paying private mortgage insurance (PMI) on your home loan. Get a first mortgage that is only 80% of your home’s value. Make up the difference with whatever down payment you have combined with a second loan for the remainder. That way, you will avoid paying private mortgage insurance on the loans. Pay e
