![\"PMI](\"\/wp-content\/uploads\/2017\/08\/pmichanges.jpg\" "\\"\\"")
There’s been a lot of “noise” talking about the changes to PMI (MIP) in 2013. However, it’s not all scary stuff like your lender might be telling you. \u00a0We thought we’d break it down for you. Before we do though, let’s go over PMI Changes<\/strong>(or MIP) so you know what it is. \u00a0Here’s the cliff notes:<\/p>\n- \n
- PMI or MIP stands for Private Mortgage Insurance or Mortgage Insurance Premium. \u00a0The terms are not equal, but they will, unfortunately, be used interchangeably.\u00a0<\/span><\/li>\n
- PMI allows home owners \u00a0to purchase with less money down. \u00a0The insurance premium they pay as part of the loan is what makes the investment from bank more secure. \u00a0Therefore, PMI is a good thing from that perspective.<\/li>\n
- PMI is not required on all loans – that’s right your loan officer can sometimes structure your loan with low down payment but still keep you from paying any MIP.<\/li>\n<\/ul>\n
So the rate increased back in April. \u00a0The rate when up a whopping .1% overall. \u00a0 Of course, with six digit numbers any % is too much. \u00a0But the newest change is what is scaring a lot of home buyers. Starting in June, your loan will have PMI, for LIFE! \u00a0What does that mean? \u00a0It simply means that this new PMI change in 2013 is that you will have PMI for the life of the loan. \u00a0Meaning you could refinance the home and get rid of the PMI if that makes sense after you’ve gotten 20% equity in the home.<\/p>\n
The average life of the loan is 5 years and it happened so rarely that I’m sure they figured no one would notice.<\/p>\n
How Can I Avoid Paying PMI?<\/strong><\/p>\n
Bring in a 20% down payment (it can be a gift from a family member)Four ways to avoid paying private mortgage insurance:<\/p>\n
- \n
- Obtain a second mortgage or a “Piggyback” loan (yes, they still exist).<\/li>\n
- Have your lender pay the PMI with a lender rebate or credit to avoid monthly payments.<\/li>\n
- Have the seller pay the PMI.<\/li>\n<\/ol>\n
For the best information please contact a good loan officer, and we’re happy to recommend one to you, simply Contact Us!<\/p>\n
Related Real Estate Resources:<\/strong><\/p>\n
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- Most Powerful Person In Real Estate<\/a><\/li>\n
- Relocate To Duluth GA<\/a><\/li>\n
- Real Estate FAQS<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
PMI Changes In 2013 – What Changes Are Happening And Is It That Scary? There’s been a lot of “noise” talking about the changes to PMI (MIP) in 2013. However, it’s not all scary stuff like your lender might be telling you. \u00a0We thought we’d break it down for you. Before we do though, let’s […]<\/p>\n","protected":false},"author":1,"featured_media":401,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[16],"_links":{"self":[{"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/posts\/74"}],"collection":[{"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/comments?post=74"}],"version-history":[{"count":0,"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/posts\/74\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/posts\/401"}],"wp:attachment":[{"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/media?parent=74"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/categories?post=74"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/search4.homes\/wp-json\/wp\/v2\/tags?post=74"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- Relocate To Duluth GA<\/a><\/li>\n
- Most Powerful Person In Real Estate<\/a><\/li>\n