By info@shareamg.com 
Private Mortgage Insurance (PMI) is an extra monthly fee most lenders require if the down payment on a home is less than 20 percent. Here are several ways to avoid PMI.
Steps:
- Gather or borrow enough funds to make your down payment more significant than 20 percent.
- Consider purchasing a more affordable property to increase your down payment to 20 percent.
- Increase the amount of the purchase price of the home and have the seller credit the additional money toward a more significant down payment.
- Find a lender who will charge a slightly higher interest rate instead of requiring PMI. The benefit is that you’ll be paying a slightly higher payment due to the higher interest rate, but all the interest will be tax deductible.
Tips:
- When the loan is paid down to 20% of the original loan amount (not purchase price), the homeowner may request that the PMI be removed with the necessary.
- Documentation (an appraisal). The lender will not notify the borrower.
- It is not currently required by law) when the homeowner has reached that magic.
- There are 80% loans to value. Legislation is pending to make lenders more responsive to borrowers regarding notification and removal of PMI.
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