How to Get a Loan Without Private Mortgage Insurance (PMI)
For many individuals and families who are looking at purchasing a home, or any other real estate, private mortgage insurance (PMI) can be a major cost factor. PMI is a requirement that comes into play if the buyer’s initial down payment is less than 20% of the purchase price. PMI is designed to guarantee the bank’s interest in the property in case the buyer is unable to keep up with the mortgage payments. Many banks advertise loans that only require low down payments, but the cost of PMI may be excessive. It is important to understand that there are several ways to avoid PMI.
Method One of Five:
Making a Large Enough Down Payment Edit
Method Two of Five:
Using a Piggyback Loan Edit