Take a moment and look at your mortgage statement. If you see a fee for PMI, you are paying a Private Mortgage Insurance monthly.
What is PMI?
PMI is a risk management product that lenders use to help protect themselves. If a borrower defaults (failure to pay interest or principal when due) the lender will not face any repercussions. A borrower will pay PMI if they do not put at least 20 percent down when buying their home. They are considered a high risk by the lender and Private Mortgage Insurance is how they combat that risk. A borrower will pay this fee until they have accumulated enough equity in the home that they are no longer considered a risk by the lender.
Who Pays PMI Fees?
Robert Palmer recently discussed PMI on Saving Thousands. “Whenever you put less than 20% down, or if you get an FHA or USDA home loan, then it wont matter how much you put down. You pay this other fee.” He continued by stating,”everybody pays interest, but some people pay this second charge, PMI (Private Mortgage Insurance) or MIP (Mortgage Insurance Premium). It is a big waste of money on your payment every month.
PMI can cost homeowners over $200 dollars a month. This extra fee can definitely put a strain on your finances.
But, Robert explains how you can eliminate this fee and save money: “Most people are are able to refinance their home loan, eliminate the PMI and save hundreds of dollars a month.”
How You Can Stop Paying PMI Each Month
“If you still have your old FHA loan, you are paying the ridiculously expensive mortgage insurance. If thats the case, you need to call us because we need to figure out a way to refinance you either into a new FHA loan, or better yet, which is more likely, because home values have gone up so much, you can refinance into a conventional loan, and you can eliminate the PMI completely. And you can do it without paying a dime in closing costs, because I am going to pay them all.”
You don’t have to be stuck paying a PMI fee every month. Take action today.