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Home Empowerment Here’s how to remove private mortgage insurance | The Simple Dollar

Here’s how to remove private mortgage insurance | The Simple Dollar

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Here’s how to remove private mortgage insurance | The Simple Dollar
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Private mortgage insurance is a form of protection for lenders in case you default in paying your mortgage. This is an extra mortgage from your home loan purchase with less than a 20% down payment. Using a median rate of 1% mortgage insurance, a $300,000 mortgage will cost you another $3,000 per year in PMI that you could have used to save for an emergency fund. If you are already paying for mortgage insurance and you want to get rid of it, you can contact your lender once you have built at least 20-22% equity in your home through mortgage payments or property appreciation.

Source: https://www.thesimpledollar.com/mortgage/removing-private-mortgage-insurance/?utm_source=feedly&utm_medium=webfeeds&utm_campaign=Feed%3A+thesimpledollar+%28The+Simple+Dollar%29