pmi rates in baltimore

The 3 Strategies to Pay Private Mortgage Insurance (PMI)

Whether they're putting 15% down and buying a non-owner-occupied property or utilizing an owner-occupied loan with 0%, 3%, 3.5%, or 5% down for Nomading™ or house hacking, some real estate investors will choose to put less than 20% down. With the decision to put less than 20% down comes the choice of how to pay for private mortgage insurance (PMI).

There are three options (plus some combinations of the three options): up-front lump sum, lender-paid, and monthly. And, as you might have guessed, there are pros and cons to each option.

In this mini-class, James will cover the three options and go over the pros and cons of each.

Check out the video from this class here:

The 3 Strategies to Pay Private Mortgage Insurance - Video

In this class, James discusses:

• What is Private Mortgage Insurance (PMI) and why does it exist?
• Paying PMI with a single, upfront, lump-sum payment
• Voluntarily increasing your mortgage interest rate and having the lender pay for PMI
• Paying PMI monthly
• The pros and cons of utilizing each strategy
• Plus much more...

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Baltimore real estate investor podcast? Book a free consultation to discuss.

What Affects Your PMI Rate

Lenders prefer that you put at least 20% down, but if you push hard enough, many will allow you to put less than 20% down if you're willing to purchase insurance to protect them in case you default. This insurance is called Private Mortgage Insurance.

The cost of this insurance depends on several factors. Some are primary factors and have a significant impact on the cost of the insurance policy. Other factors are secondary and affect the premium, but only to a smaller extent.

In this mini-class, James will go over the things that affect your private mortgage insurance rate if you decide to put less than 20% down when buying properties.

Check out the video from this class here:

What Affects Your PMI Rate - Video

In this class, James discusses:

• What is Private Mortgage Insurance (PMI) and why does it exist?
• Factors that affect your PMI rate
• Loan-To-Value of the property (often just the first lien)
• Coverage amount for the lender
• Your credit score
• Amortization term of the loan itself - shorter terms have lower PMI
• Fixed and variable payment amounts
• Time you’ve been paying the rate
• Lender (separate pricing sheet for Credit Unions)
• Hard minimums for PMI rates
• Cash-out refinance
• Second home
• Employee relocation loans
• Manufactured Homes
• Investment Property
• 3-4 units
• Lender-Paid Monthly Premium
• Declining Renewals
• Annual Premium
• Refundable Monthly Premium
• High Debt-To-Income Ratio (> 45% DTI)
• More than 1 borrower on the loan (reduces PMI rate)
• Plus much more...

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:

https://RealEstateFinancialPlanner.com/spreadsheet

Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.

Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Baltimore real estate investor podcast? Book a free consultation to discuss.