What is PMI and what options are there to deal with it?

I believe that in order to help you its important to better understand your goals. I know everyone's goal is to put the least amount down, get the best rate and lowest payment however there are often programs a professional loan officer can help you structure that most people are not aware of. There are loans with monthly and one time PMI payments from 3.5 to 15% down and there are PMI options with partial refunds if you sell before a certain time. There are some loans that gain you nothing after a 640 credit score and some that will penalize you if you are below a 740. I would love to know more about your goals

The PMI is a protection for the lender so that they will lend more than 80% of the value of the home. You can actually borrower up to 95% on a conventional loan and it would include PMI. If you don't want monthly PMI you can do a upfront payment at closing that would eliminate the monthly PMI or you could get LPMI which would be paid by the lender. LPMI is paid by the lender by increasing your rate.The real question should not be that you don't want to pay PMI it should be are you looking for lowest payment, lowest rate, or lowest payment over the whole term of the loan. For example if you take a loan with no PMI and a higher rate versus a rate that is 0.75% lower with PMI but only for the first 9 years of the loan which one works out better for you in the long run?So you need an amortization schedule for each option so that you can compare the pros and cons now, 5 years, 10 years, and 30 years down the road. Fee l free to reach out to me if you need something like this worked up.

If you have served in the armed forces or national guard you may be eligilbe for a VA Mortgage. You can qualify for 100% financing with no monthly PMI.There is a VA funding fee which can be financed in the new loan or paid for with a lenders credit.

To avoid PMI require 20% a down payment. MI is for the lender's risk level. A middle 740 FICO score of all borrowers on the loan application will usually give you the best rate. ... Good luck. ... Happy funding, Rudi