PMI
PMI stands for private mortgage insurance. After the foreclosure crisis of the Great Recession, laws were passed requiring homebuyers who make low down payments to buy extra insurance against foreclosure or default. This is an extra expense you will face if you put less than 20% down. However, if at any point you pay down or refinance your loan to 80% of the appraised value or lower, you will no longer be required to pay for PMI.
If you are a first-time homebuyer, you may qualify for state-funded grants to assist with down payments. I can help you identify grants you might qualify for, which will make buying a home even more affordable and put you in a positive equity position from the get-go. Grants for Homebuyers
2024 Buyer Guide · 8
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