Many new home
buyers are shocked to discover they’ll be forced to
carry private mortgage insurance in addition to all of the other expenses
that come with buying a new home.
But you don’t have to be stuck
with PMI forever – although don’t expect your lender to
notify you of that fact. Private mortgage
insurance covers the lender in the event that you aren’t
able to pay your mortgage back.
It allows you to buy a home
without the usual 20% down payment. PMI is still
an extra payment you don’t want – no matter if it’s $20
extra per month or $200 a month
extra.
You can do several things to
shorten the length of time you’re required to pay
PMI. For instance, making extra payments on your
loan, doing some home improvement projects, and upping
the appreciation f your property value are all tactics
for giving PMI the boot!
Disclaimer: The information
provided in this site is not legal advice, but general
information on financial issues commonly encountered. We
shall not be liable for any errors in the content or for
any actions taken in reliance thereon. Please consult
your financial
advisor.
