April 16, 2013

What is PMI and how can you avoid paying it when you buy a home?

2 thoughts on “April 16, 2013”

  1. Thomas Graham says:

    PMI is private mortgage insurance. You can avoid paying it by putting at least 20% down on your home when you are buying it.

  2. Mike Finley says:

    You are correct, Thomas. Private mortgage insurance kicks in when you fail to come up with 20% for the down payment on a home. So here you have some simple options.

    You can put less money down and pay more money each and every month that you will never see again OR you can wait, keep saving your money, and when you do have that 20%, then and only then do you buy the home of your dreams. The wise home owner selects the second option. Be the wise home owner!

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