Mortgage rates drop and why I LOVE PMI!
It’s Wednesday, October 5th. I have a great news, great update. And then I want to tell you why I love PME. First of all, we had about a quarter of a percent drop in mortgage rates in the last two days. There’s no rhyme or reason behind it, no specific data supporting it. But we’ll take the wind when we can get it.
If you have any questions about how that may impact your client, please reach out to me directly. I want to tell you why I love PMI. PMI, if you don’t know sense of private mortgage insurance, it’s insurance to the lender that you won’t default. If you have less than a 20% down payment, the internet hates it. They’re wrong.
All the antiquated people hate it. They don’t know what they’re talking about. Let me tell you why. If you buy a home and only have ten or 15% down, you have insurance. It’s a small cost. Number one, the insurance automatically goes away within about 4 to 7 years, depending on your payment schedule. Number two, if values go up and rage dropped, you can always refinance the PMI away.
Number three, if you don’t buy the home now, you lose out on 4 to 7% of appreciation over the next few years. And then you’ve lost a lot more money than you’ve paid monthly in the PMI. So many questions about PMI and why I love it. Reach out to me anytime. Thanks.
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