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Want to Invest in Real Estate?

How to Hire a Realtor

What's the Key to Locking in a Mortgage?

How to Improve Your Credit

Watch out for Mortgage Fraud

Need a Buyer-Broker?

Learn How to Best Insure Your Home and Save Money

Avoid Trouble on Your Kids Mortgage

Downward Direction for Down Payments

How to Hire a Contractor

Save Money by Cancelling Your Private Mortgage Insurance ("PMI")

Crunch the Numbers and Drop Your Private Mortgage Insurance ("PMI") Payments

Who's Watching your Deposit Money?

Remodeling Value: Your Best Investments

More Than One Way to Pay for Remodeling

File Your Income Tax Returns Early and Save Money

Types of Loans Available for the Self-Employed

Top Five Homeowner Tax Saving Ideas


About Private Mortgage Insurance

PMI is an insurance policy that protects a dwelling and its contents from personal liability and damage. Private Mortgage Insurance protects the lender in case of default by the borrower.

You May Have It

If you bought your home with less than 20% down, chances are you are paying for PMI. Why? To protect your lender against the possibility that YOU might default on your mortgage loan.

Yes, the Truth Hurts
You will keep paying.

Even if you have a perfect payment history, you still pay hundreds every year to insure your lender in case you default, and get absolutely nothing in return. Forty percent of homebuyers pay PMI, according to the Mortgage Bankers Association of America.

It's a Blessing...
And a Curse.

Statistically speaking, the less you put down on a home purchase, the more likely you are to default, and the more risk to a lender. That is why lenders insist on PMI when borrowers put down less than 20% on a home purchase. To a first-time homebuyer, it improves your chances of getting a 5% down loan. So PMI does make down payments more affordable and lenders more comfortable in financing up to 95% of the sale price.

It's a Good Idea Gone Bad
Here�s why...

In theory, when you pay down your loan principal to 80% of the original price, the loan servicer is supposed to cancel your PMI. But some irresponsible loan companies take a hands-off approach, by continuing to collect premiums for years after the insurance should have been canceled. This can drag on until you finally discover the problem and request a refund!

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