How to Avoid Paying Private Mortgage Insurance on Your Cape Coral Real Estate


If you get a mortgage for more than 80% of your Cape Coral real estate’s fair market value, your lender will require that you pay Private Mortgage Insurance (PMI). PMI payments are expensive at about 0.5% to 1% of the entire loan amount on an annual basis.

Obviously, it would be a good thing if you didn’t have to pay PMI. To help you achieve that goal, here are several tips to avoid paying PMI on your Cape Coral real estate:

• Save for a big down payment: The easiest way to avoid PMI is to have a down payment of at least 20% of the value of the home you want to purchase.
• Borrow to get 20% down: Check with friends and family for down payment assistance. You can offer repayment with interest and still never pay as much as you would have to for PMI.
• Get a Second Mortgage: Getting a second mortgage to cover the difference between your down payment on your first mortgage and the 20% threshold for your PMI can make a substantial difference in your monthly payments. Talk to a qualified mortgage professional to discuss your options.
• Pay More Interest: Some lenders will waive PMI if you agree to a higher interest rate. Again, discuss your options with a mortgage professional.
• Consider a Less Expensive Home: This goes back to being able to hit that 20% threshold. As we’ve all seen in this tough economy, stretching beyond your means can have dire consequences if your circumstances change. Consider if you really need that extra bedroom and extra expense. If you haven’t saved enough to afford an expensive home, downsize your expectations and buy within your means.

If you’d like a referral to an outstanding mortgage professional or need help finding Cape Coral real estate that fits your budget, give me a call today at 239-699-0142 or email me at Liloc@att.net.
Please visit my Website at www.LiloRealtor.com

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About Lilo Realtor

With over a decade of industry experience, Lilo Clacher is proud to represent Cape Coral/Lee County FL . With a degree and previous career in interior design, Lilo understands the importance of the entire package her clients are receiving. Lilo has a passion for real estate and a passion for taking care of her clients. She understands that for many they are making the biggest investment of their lives, and therefore she endeavors to make their experience in buying or selling as easy and comfortable as possible. With an impressive repeat and referral rate of 90 percent, it is clear that her clients appreciate the dedication she puts in to every real estate transaction. In addition to being fluent in German and Swedish, Lilo has received numerous awards for excellence in real estate. She received the 2000,2001 and 2002 Excellence Award for being a multi-million dollar producer, as well as the 2003 and 2004 Platinum Award, Diamond Award 2005, 2006. Multi million Dollar producer in 2007, 2008, 2009 She also received the Designation e-PRO Endorsed by the National Association of REALTORS®, for being an internet savvy realtor, for knowing how to work with the 87% of clients, starting seeking Real Estate per Internet. Lilo received the Designation for Short Sales, Foreclosures and Home modefication loans, helping homeowners to keep there home. In her free time, Lilo enjoys boating, diving, Horsebacriding, Gardening and catching up on her reading.
This entry was posted in Cape Coral, Cape Coral homes for sale, Financing, FL real estate, Fort Myers Fl Homes, Real Estate and tagged , , , , , , , . Bookmark the permalink.

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