Get Rid of your PMI payment

And whats worse, this is wasted money you will never see again because it doesn’t reduce the mortgage balance and in most cases it's not even tax deductible!!

Typically when purchasing a home, a 20% down payment is usually the standard. But, there are cases where this is just not an option and you've opted to pay less. Some Loans will accepts as little as 0% down.

However, this comes with a catch...

When a bank Lends money for the purchase of a home, the Lender's risk is usually the difference between the home’s value and the amount outstanding on the Loan. So, having a 20% down payment gives the lender a cushion against the costs associated with foreclosure on the chance that a purchaser is unable to pay. But, with housing prices skyrocketing, it isn’t always possible to put 20% down on a home purchase.

So, how does a lender handle the added risk of the small down payment? The answer is Private Mortgage Insurance or PMI. PMI guards the Lender in the event a borrower is unable to pay on the Loan and the market price of the house is Lower than the balance of the Loan.

But paying PMI has Little upside for the homeowner. Not only does it increase your monthly mortgage payment, but since the payment is Lumped into the total mortgage payment, its often isn't even tax deductible in most cases AND is doesn’t reduce your principal. Sure, PMI is great for the bank...they collect your monthly payments and, in the off chance that there is a default, they still get all their money because they’ve got the PMI policy. But as a buyer, you end up paying $40,000, $50,000, $60,000 or more over the term of the policy and you don't get any benefits.

PMI is a WIN for the Banks and can be a real LOSS for the Homeowner

let us help you reduce or eliminate your PMI Payment