What is PMI?
PMI (Private Mortagage Insurance) is insurance to protect the lender against losses resulting from the sale of foreclosed property, where the proceeds from such sales is insufficient to cover the remaining debt. Generally speaking, lenders require PMI when a borrower's down payment is less than 20%. The smaller the down payment, the more expensive the cost of the PMI.

How can I avoid PMI?
PMI can be avoided by making a down-payment of 20% or more. However, there are other ways to avoid PMI with as little as 5% down through lender self-insure programs, or a combination of 1st and 2nd liens used for purchase. This can save you thousands of dollars.

For more information on how to buy a home without PMI, please complete our on-line form, or contact us today.