))
What is PMI And How to Avoid It
Manage episode 389673249 series 3375592
Inhoud geleverd door Real Estate Financial Planner LLC and James Orr and James Orr. Alle podcastinhoud, inclusief afleveringen, afbeeldingen en podcastbeschrijvingen, wordt rechtstreeks geüpload en geleverd door Real Estate Financial Planner LLC and James Orr and James Orr of hun podcastplatformpartner. Als u denkt dat iemand uw auteursrechtelijk beschermde werk zonder uw toestemming gebruikt, kunt u het hier beschreven proces https://nl.player.fm/legal volgen.
What is PMI And How to Avoid It
You want to work with a lender so that you don't need to purchase a property with all cash. The lender is willing to lend you money, charging you interest to make a profit, and ensuring there is a safety buffer of equity in case you default and they need to foreclose to recover their funds.
Your goal is to minimize the amount you need to invest in the deal to maximize your return on investment, but the lender requires a minimum down payment of 20% to feel secure in loaning you the money in case you default and they need to foreclose to recover the property and their money.
You insist on putting down less than 20%.
Reluctantly, they agree to let you put less than 20% down, but only if you purchase third-party insurance to protect them in case of default. You agree.
The third-party insurance company is offering private mortgage insurance (PMI), which is insurance you pay to protect the lender in case you default because you put down less than 20%.
In this mini-class, we will look at PMI, what it is, and how you can avoid it as a real estate investor.
Check out the video from this class here:
What is PMI And How to Avoid It - Video
In this class, James discusses:
- What is Private Mortgage Insurance (PMI) and why does it exist?
- What is PMI called for FHA loans?
- How to avoid paying PMI?
- Putting at least 20% down to avoid paying PMI
- Paying down on your loan to get rid of PMI
- Opting to take a higher mortgage interest rate instead of PMI
- Get a loan that doesn't have PMI at all
- Utilize the creative financing strategies that don't have PMI
- Plus much more...
Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:
https://RealEstateFinancialPlanner.com/spreadsheet
Improve Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.
Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Detroit real estate investor podcast? Book a free consultation to discuss.
132 afleveringen
Delen
