Posts

“Private” Mortgage Insurance vs. FHA Mortgage Insurance – Huge Difference!

I recently blogged about three options to eliminate Private Mortgage Insurance (PMI), and I received several notes asking why I did not mention FHA Mortgage Insurance. By the way, I love reader-feedback, so please keep it coming – as it often makes for great blog fodder! I didn’t cover FHA Mortgage Insurance because I was […]Read More

Eliminating PMI – With Appreciation, Paying Down Loan, or Refinancing!

A client who bought in 2019 emailed me this week, asking how to get out of PMI. Because appreciation has been so massive over the last few years, there is no reason anyone should have kept their PMI in place for more than two years.Read More

How To Estimate PMI (Private Mortgage Insurance)

An agent asked for this blog in December, and I am finally getting to it but should have done so much sooner because it was a great request! As an aside, if any readers would like to see me blog about something in particular, please feel free to email your requests, as I greatly appreciate […]Read More

Using PMI To WAIVE Appraisal Contingencies

Many homebuyers do not realize that PMI can be an option for those who might want to make offers with no appraisal contingencies. This, of course, is a great idea, but with a HUGE CAVEAT: BEWARE OF JUMBO! PMI is always a great way to cover appraisal shortfalls on the conforming front. Example: Borrower intends […]Read More

Private Mortgage Insurance (PMI) – When & Why It Is Pretty Awesome

Private Mortgage Insurance (PMI) earned an unjustified bad rap back in the 1990s. Investopedia, in fact, lists “six reasons to avoid PMI,” including: (1) Cost; (2) No Longer Tax Deductible; (3) Heirs Get Nothing Because It Is Not Benefits Insurance; (4) Hard To Cancel; and (5) Payment Is Permanent. But – many of those “reasons” […]Read More

How To Avoid PMI With Less Than 20% Down

It is possible to purchase a home with less than 20% down and avoid private mortgage insurance (PMI). Homebuyers have many options when it comes to their loan’s down payment amount. Many borrowers are not aware of the amount of flexibility within the mortgage industry. Big Down Payments Are Not Always Necessary There are many […]Read More

PMI Can Help Homebuyers In California

Every year, tens of thousands of homebuyers are helped by private mortgage insurance (PMI). Without PMI, many of those folks would not have been able to move forward with their home purchases because of their insufficient funds for a down payment. Private mortgage insurance allows buyers to bridge this gap and purchase a home sooner […]Read More

A Guide To Private Mortgage Insurance In California And Texas

California and Texas Homebuyers with small down payments are often subject to Private Mortgage Insurance (PMI). Many homebuyers have questions about PMI, why they have to pay it, and how they can avoid it when buying a home. WHAT IS PRIVATE MORTGAGE INSURANCE? Private Mortgage Insurance (PMI) is an insurance policy for conventional loans that […]Read More

“PMI” or “Private Mortgage Insurance” Explained (Briefly)

PMI remains a great option for high-LTV financing in 2019, and all too many borrowers and agents do not fully understand how it works. First of all, PMI protects lenders (not borrowers) in the event of default. So borrowers with PMI will still be on the hook or liable for their mortgage debt even after […]Read More

How Much Are PMI Payments? How To Estimate Your PMI

Most everyone knows that buyers who put down less than 20% usually have to purchase Private Mortgage Insurance or PMI. But most people also have no idea how much PMI payments are. PMI payments can be made monthly, in a lump sum at closing, or as a combination of the two. Most of our borrowers […]Read More

Prime Rate Up; HELOCs Up; PMI Down

Prime Rate was 3.5% last year at this time. Currently the Prime Rate is 4.25%. It has been climbing steadily with every increase in the Fed Funds Rate. Prime Rate is the interest rate that large companies pay to borrow funds for short periods. It matters to real estate b/c Home Equity Lines of Credit […]Read More

Unison – 10% Down Payment Assistance For Small Share of Appreciation

Unison contributes 10% of the purchase price or more to help buyers increase purchasing power, to save cash for other uses, to avoid PMI, or to reduce payments in order to lower debt ratios or just save money. Unison does not charge interest or any payments, but only takes a small percentage of the appreciation […]Read More

The Case for Private Mortgage Insurance; PMI Is a Great Option Now

Private Mortgage Insurance (PMI) for buyers with less than 20% down has been much maligned for all too long. PMI is now, however, so much more competitive that it is often a far better option than the two highly touted alternatives: Lender Paid Mortgage Insurance (LPMI), and 80/10/10 (1st and 2nd mortgage) financing. PMI is […]Read More

Arch Mtg Ins; MUCH Cheaper; Algorithms

Today’s Blog is about Private Mortgage Insurance, normally a boring subject, but now fascinating for a few reasons. First, Arch MI is now available for strong borrowers as a fantastic alternative to traditional PMI, FHA financing, and 80/10/10 (1st/2nd Combo) financing. Arch MI is much, much cheaper b/c they use algorithms to calculate risk and […]Read More

Dow Hit Record High; Getting Out of PMI

A borrower recently called us to discuss his refi options. He had a 30 year fixed rate loan at 3.5%. He also had PMI that he wanted to eliminate b/c he now has substantial equity in his Bay Area home. As much as we wanted the refinance business, we told him not to refinance but […]Read More