August 21, 2013
Avoiding PMI when you buy a home should be a high priority. What is PMI and how do you avoid paying it?
Avoiding PMI when you buy a home should be a high priority. What is PMI and how do you avoid paying it?
PMI is Private Mortgage Insurance. You avoid paying PMI by having a down payment of 20% of the price of the home set aside.
Right again, Katherine. DO NOT pay PMI, folks. If you don’t have the required down payment, WAIT until you do. PMI is simply money thrown down a drain as you try to squeeze into a home you are not financially ready for. It’s that simple. Don’t complicate matters. Keep renting, keep saving, and one day you will have the required amount needed to avoid PMI.