Private Mortgage Insurance (a.k.a. PMI) is a good thing! PMI will not be on the homeownership journey with you forever! Private Mortgage Insurance provides a road for someone that does not have 20% down of the purchase price for a new home. Yes, you can buy your dream home sooner with the help of PMI and you can own a home with as little as 3% down. I truly believe that homeownership creates wealth for the families I serve and episode 43 of the Martini Mortgage Podcast is about Private Mortgage Insurance. Only you know what the right solution is for you and your family. The question of renting versus buying or waiting until you hav e a substantial down payment to purchase a home is your decision.
Kevin Martini is the Branch Manager and Senior Mortgage Strategist of the Martini Mortgage Group at Benchmark Mortgage which is located in Raleigh, NC. Kevin Martini produces weekly the Martini Mortgage Podcast to help educate so you one make an educated decision based on facts, not fiction. Episode 42 focused on Private Mortgage Insurance.
“It does not matter if you put no money down on the home, it does not matter if you put 3, 5 or 20 percent down…heck it does not matter if you pay cash for the home…the market will determine the value of your home in the future, not the amount of mortgage.” - Kevin Martini
Here are some frequently asked questions the Martini Mortgage Group at Benchmark Mortgage has been asked bout Private Mortgage Insurance and here is Kevin Martini thoughts:
Won’t Private Mortgage Insurance just increase my payment?
The short answer is yes but one needs to know that the mortgage payments are determined mainly by the interest rate and the loan amount plus property taxes and homeowner insurance. Private Mortgage Insurance represents only a very small percentage of your mortgage payment on the aggregate.
How much does Private Mortgage Insurance cost?
It varies! One will need less mortgage insurance with 15% down than one will with 3% down. There are many factors that determine the costs, loan-to-value and credit score are just 2 examples.
Do I have to keep Private Mortgage Insurance forever?
No. Private Mortgage Insurance can be canceled once your mortgage balances reaches 80% of the home’s original purchase price or current appraised value.
If you or someone you know has questions about Private Mortgage Insurance, home loan rates or unique mortgage products, give Kevin Martini a call: (919) 238-4934.
Kevin Martini | NMLS ID 143962 | Branch Manager | Martini Mortgage Group at Benchmark Mortgage | Ark-La-Tex Financial Services, LLC NMLS ID 2143 | 5650 Six Fork Road, Suite 101, Raleigh, NC 27608 | (919) 238-4934 | www.KevinMartini.com | Kevin@KevinMartini.com | Equal Housing Opportunity