John & Jane Doe - EXAMPLE
John and Jane Doe bought a home 10 months ago for $250,000. They financed 95% (typical of today's financing) for a 30 year period. They got an excellent mortgage deal and paid 5.5% interest. Since they ONLY made a down payment of 5%, they are REQUIRED to pay PMI (Private Mortgage Insurance) to guarantee the lender that they will pay the mortgage payments. How much are they REQUIRED to pay every month for the Expensive PMI Mortgage Insurance?
Here are the calculations:
Purchase Price = $250,000
Amount of Down Payment = $12,500
Interest Rate = 5.5%
Length of Mortgage = 30 Years
As you can see, John and Jane are paying $154.00 in PMI Insurance EVERY MONTH ! That is a HUGE amount to guarantee the Mortgage Company that they will pay their mortgage payments.
Once you have 20% or more equity in your home YOU DO NOT HAVE TO PAY FOR PMI INSURANCE ANYMORE ! In other words, the value of your home has gone up over 15% since you purchased it - NO MORE PMI ! It is as simple as that.
Why don't Mortgage Companies tell you, when you don't have to pay for PMI Insurance anymore? Take a guess......
Could it be that they are getting a commission from the PMI Insurance Companies for writing the policy?
Complete the FREE PMI REMOVAL ANALYSIS and we will tell you if your home has increased to over 20% equity. If it has, we will lead you through the simple process to get the PMI Insurance removed.
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