Private mortgage insurance can add costs for home buyers not putting 20% down. But there are ways to potentially dodge PMI while still buying with less than 20% down. What strategies like piggyback loans allow financing with lower down payments without mandatory PMI? How else can savvy home buyers outsmart this added insurance cost?
One strategy to avoid private mortgage insurance (PMI) is to utilize a piggyback loan, where a second mortgage covers part of the down payment. Another option is lender-paid mortgage insurance (LPMI), where the lender pays for PMI in exchange for a higher interest rate. Saving for a larger down paymRead more
One strategy to avoid private mortgage insurance (PMI) is to utilize a piggyback loan, where a second mortgage covers part of the down payment. Another option is lender-paid mortgage insurance (LPMI), where the lender pays for PMI in exchange for a higher interest rate. Saving for a larger down payment or exploring loan programs that don’t require PMI, such as VA or USDA loans, can also help. Consulting with a mortgage professional can provide further guidance on outsmarting PMI.💚
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