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?
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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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