Mortgage insurance protects the lender against potential borrower default on mortgage loans. Private Mortgage Insurance or “PMI” is required with most conventional, non-government backed mortgages when the down payment is less than 20% of the home’s value. That means the loan to value ratio (LTV) is greater than 80%. The cost of PMI varies based […]
States with the best real estate appreciation over the last 3 years could have the most PMI Zombies– or in other words homeowners with mortgages where PMI still lives when it should be dead. Some states might surprise you. In markets with strong real estate appreciation, PMI could be cancelled sooner assuming the loan is […]
The loan to value ratio (LTV ratio or just “LTV”) is a ratio that lenders use to assess relative risk of borrower’s potential default on a mortgage loan. The higher the LTV, the higher the risk for the lender because there is a higher loan balance compared to the home value. A loan with a […]
For conventional loans, the lender calculates PMI at mortgage initiation and then it’s held constant until the mortgage is paid down and the loan to value (LTV) ratio reaches 78%. Even though a home’s value might have increased 25% in value, lenders use the original schedule for cancelling PMI. It is up to you to […]
Private mortgage insurance or “PMI” insures the lender against potential borrower default on conventional mortgage loans. PMI is required with most conventional (non-government backed / FHA) mortgages when the down payment is less than 20% of the property value. That means the loan to value ratio (LTV) is greater than 80%. PMI varies based on […]
PMI can have a long life. It will take 80 months for the principal in your home to reach a 78% loan to value (LTV) ratio and qualify for cancellation of PMI. PMI can cost over $7,000 on a $250,000 home with 10% down . You don’t have to wait to kill PMI. Here are […]
Private Mortgage Insurance or PMI is determined at 5 loan initiation and remains constant until it gets cancelled at 78% LTV. If you’re close to that limit, e.g. 85% or 82% LTV, etc., put in the funds to reach the goal of 80% LTV for refinancing the loan or 78% for waiver with current lender…
Not all home improvements are the same. Some add more value than others. But start simple and focus on the basics. No need to pick from the top of the tree. Start with the low hanging fruit and prioritize based on budget and value added.