What is Private Mortgage Insurance (PMI)? Why does it matter to real estate investors? And, how to avoid it.
That’s what we cover in this week’s new podcast episode.
You want to work with a lender so that you don't need to purchase a property with all cash. The lender is willing to lend you money, charging you interest to make a profit, and ensuring there is a safety buffer of equity in case you default and they need to foreclose to recover their funds.
Your goal is to minimize the amount you need to invest in the deal to maximize your return on investment, but the lender requires a minimum down payment of 20% to feel secure in loaning you the money in case you default and they need to foreclose to recover the property and their money.
You insist on putting down less than 20%.
Reluctantly, they agree to let you put less than 20% down, but only if you purchase third-party insurance to protect them in case of default. You agree.
The third-party insurance company is offering private mortgage insurance (PMI), which is insurance you pay to protect the lender in case you default because you put down less than 20%.
In this mini-class, we will look at PMI, what it is, and how you can avoid it as a real estate investor.
Included In This Class
What is Private Mortgage Insurance (PMI) and why does it exist?
What is PMI called for FHA loans?
How to avoid paying PMI?
Putting at least 20% down to avoid paying PMI
Paying down on your loan to get rid of PMI
Opting to take a higher mortgage interest rate instead of PMI
Get a loan that doesn't have PMI at all
Utilize the creative financing strategies that don't have PMI
Plus much more...
How to Access in 3 Easy Steps
Click on the PODCAST button next to your city.
Select your preferred podcast player (Apple, Spotify, etc) and subscribe for free.
Enjoy!
Love,
James Orr
*As of December 16th, the total number of downloads across all Real Estate Financial Plannerâ„¢ city-specific real estate investing podcasts for all episodes over all-time is over 68,142.
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