{"id":6109,"date":"2020-07-30T12:00:55","date_gmt":"2020-07-30T19:00:55","guid":{"rendered":"https:\/\/blog.neighbor.com\/storage-blog\/?p=6109"},"modified":"2024-01-29T17:38:00","modified_gmt":"2024-01-30T00:38:00","slug":"how-to-get-rid-of-pmi-a-practical-guide-to-removing-private-mortgage-insurance","status":"publish","type":"post","link":"https:\/\/www.neighbor.com\/storage-blog\/how-to-get-rid-of-pmi-a-practical-guide-to-removing-private-mortgage-insurance\/","title":{"rendered":"How to Get Rid of PMI: A Practical Guide to Removing Private Mortgage Insurance"},"content":{"rendered":"\n

You bought a house with a home mortgage loan<\/a> and a down payment of less than twenty percent. This means you were automatically required by your lender to buy PMI, or private mortgage insurance. Through this process, you have come to realize that PMI is insurance that benefits the mortgage lender, not you. Don’t worry. You are not alone. Many new homeowners find themselves in the same situation as you. The good news is that there are multiple ways to rid yourself of your PMI. Read on to learn how to get rid of PMI.<\/p>\n

What Is the Purpose of Private Mortgage Insurance?<\/h2>\n

Private mortgage insurance is for the benefit of the mortgage lender, not the buyer. A PMI is simply a type of insurance that protects a lender should you (the buyer) have to default on your loan. PMI isn’t just for conventional mortgages. Even FHA loans, which allow for a very low down payment<\/a> and are regulated from the Federal Housing Administration, require a similar payment called a mortgage insurance premium. It’s very common for homebuyers to find themselves saddled with an extra $100-$300 PMI payment each month, depending on the house’s purchase price. The typical lender will require you to buy PMI if the down payment on your home is less than twenty percent.<\/p>\n

In order to get into their new homes quicker, many homeowners will end up putting less than twenty percent down. There’s absolutely nothing wrong with this means of getting a new home<\/a>. However, it’s also in your best interest to own over twenty percent equity in your home and learn how to get rid of PMI as soon as possible.<\/p>\n

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