1. What Is PMI, and When Do You Pay It? Private Mortgage Insurance (PMI) is a monthly cost added to your mortgage payment when you: Put down less than 20% on a conventional loan Have a higher-risk loan profile from the lender’s point of view PMI doesn’t protect you—it protects the lender in case you default. It usually adds 0.3% to […]
1. Build 20% Equity in Your Home The key to canceling PMI is hitting that magic number: 20% equity. That means your remaining loan balance is 80% or less of your home’s current value. There are two main ways to build equity: Regular monthly payments (which chip away at your principal) Making extra payments (even one extra payment a
1. Bigger Down Payment = Smaller Loan and Lower Monthly Payments 1. Bigger Down Payment = Smaller Loan and Lower Monthly Payments When you put more down, you borrow less. That means: Lower monthly mortgage payments Less total interest paid over the life of your loanBetter loan terms in many cases (including lower rates) Even a few extra
1. A VA Loan Is Guaranteed by the U.S. Department of Veterans Affairs A VA loan is a government-backed mortgage that provides exclusive benefits for veterans, active-duty service members, and eligible surviving spouses. The U.S. Department of Veterans Affairs (VA) guarantees the loan, which means lenders are more likely to offer favorable terms with lower risks. Key benefits of VA loans include: No