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What is LMI? Lenders Mortgage Insurance (LMI) is an insurance policy that some borrowers will be required to pay if their Loan to Value Ratio (LVR) is greater than 80% (in most circumstances). The purpose of LMI is to protect the lender from financial loss if the borrower can’t afford to meet their home loan repayments. It is important to understand LMI covers the lender, not you (or any other related party such as guarantors). If the borrower defaults on their loan and the sale of the property isn’t enough to clear their Home Loan, lenders can claim on the LMI policy to make up the difference. LMI is calculated as a percentage of the amount borrowed and depends on a number of variables.

Lenders Mortgage Insurance (LMI): What You Need to Know 🏡💡 LMI is a one-off, non-refundable, and non-transferable premium added to your home loan. This means if you decide to refinance with a different lender, you may need to pay LMI again. 🔢 How It's Calculated: The cost of LMI depends on the size of your deposit and how much you borrow. The more you contribute upfront, the lower the LMI cost. 🏦 Who Does It Protect? LMI protects the bank if you can’t repay your loan. It's important to remember LMI does not cover you if you're unable to make payments. 👍 Why Pay LMI? It allows you to enter the property market sooner with a smaller deposit! You can stop paying rent and start building equity sooner. 💡 Tip: You can also pay LMI on an investment property. ⏳ Remember: Time in the market is key when it comes to building wealth. Want to learn more? Contact us today! www.lukehanlon.com.au #LendersMortgageInsurance #LMI #PropertyInvestment #MortgageBroker #LukeHanlon

Instead of aiming for a 20% down payment to avoid PMI (Private Mortgage Insurance), you could put down as little as 5-10% on a conventional loan. If your credit score is solid, your PMI could be as low as $70-100 a month. And the best part? PMI is temporary! 🙌 As your home’s value increases, you can ask to have it removed after a year or so. 🔑 Here’s a tip: Take the extra cash you would’ve used for a bigger down payment and invest it. Over the next 7-10 years, even a modest return of 7-10% can add up big time. Instead of sinking all your cash into your mortgage, you’re making your money work for you in the market. 📌 Next time you’re buying a home, think about how you can use your mortgage to leverage your finances. Don’t let PMI scare you away—it’s just a tool that can lead to bigger returns in the long run.

How can i get rid of my PMI in my conventional loan? To remove PMI (Private Mortgage Insurance) from your conventional loan, you typically need to reach 20% equity in your home. Make Extra Payments: Home Appreciation: If home values in your area increase, your equity may grow faster, helping you reach the 20% threshold sooner. Request PMI Removal: Once you believe you’ve reached 20% equity, contact your lender to request PMI removal. They may require a new appraisal to confirm the home’s value and equity. Keep in mind that some lenders have additional requirements or may have specific guidelines for PMI removal, so it’s essential to communicate with them directly and understand their process. If you have any questions, please reach out to get a free consultation, 📍115 West Century Road Suite 115 Paramus,NJ 07652 BSM NMLS: # 191351 Angelo Sceppaguercio Advisor NMLS: # 1669904 https://lnkd.in/g9V7mHwf Licensed by the NJ Dept of Banking and Insurance. #BondStreetMortgage #MortgageAdvisor

Not sure what "MIP" means? Mortgage Insurance Premium (MIP) is an insurance policy used in FHA loans if your down payment is less than 20%. It protects lenders in case of a borrower defaults and allows borrowers to qualify for a mortgage when they might not meet the strict requirements of conventional loans. This means you can acquire your new home sooner, even if you're still building your savings. A small price to pay for such a big step towards your future! Learn more by visiting the HQM website now. 💻 #HomeBuyingTips #Mortgage101 #FHALoans #RealEstateTerms

🏠💰 Understanding PMI: What You Need to Know! 📝 Private Mortgage Insurance (PMI) is often required for conventional loans when the down payment is less than 20%. It protects the lender in case the borrower defaults on the loan. While PMI adds to your monthly mortgage payment, it can help you qualify for a loan with a smaller down payment. 📌PMI can eventually be removed from your mortgage payments. Reaching 20% equity in your home is a good time to request that it be removed. However, some lenders may require specific criteria, such as a good payment history and no subordinate liens on the property. IT’S A HUGHES DIFFERENCE. STAY POSITIVE. SUPERCHARGED ⚡2️⃣4️⃣🎤7️⃣ TO TAKE CARE OF YOU 🫵 AND ALL OF YOUR REAL ESTATE NEEDS. LIST IT. SELL IT. FIND IT. HUGHES IT. 👊 CALL OR TEXT TEAM EXPERIENCE NOW ON THE POSITIVITY H🔥TLINE 540-314-5583. WE ARE READY TO GO. #Optimist #bestofroanoke #realestate #teamexperience #buyersandsellersagents #staypositive #sellthevalley #roanokerealestate #referme

💡🏠 Want to avoid paying Private Mortgage Insurance (PMI)? Here is what you need to know: 20% Down Payment 💵: To skip PMI, you will need to put down at least 20% of the homes purchase price upfront. What is PMI? 📋: PMI is insurance that protects the lender if you default on your loan. It is required if your down payment is less than 20%. Why Avoid PMI? ❌: Skipping PMI can save you money on your monthly mortgage payments and reduce the overall cost of your loan. Building Equity 📈: A larger down payment not only helps you avoid PMI but also means you start with more equity in your home. Other Options 🤔: If 20% down isn’t feasible, consider alternatives like a piggyback loan or lender-paid PMI. Ready to explore your options and make the most of your down payment? 💬✨ #AvoidPMI #HomeBuyingTips #MortgageEducation #brandysquireshomeloans

𝗠𝗢𝗥𝗧𝗚𝗔𝗚𝗘 𝗤&𝗔❓ 𝗛𝗼𝘄 𝗺𝘂𝗰𝗵 𝗱𝗼 𝗜 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗽𝘂𝘁 𝗱𝗼𝘄𝗻 𝗮𝘀 𝗮 𝗱𝗼𝘄𝗻 𝗽𝗮𝘆𝗺𝗲𝗻𝘁? The required down payment varies depending on the type of loan you choose. For instance, a conventional loan typically requires a 20% down payment. However, you can opt for a lower down payment, but you'll need to pay for private mortgage insurance (PMI). #theadlerteam #mortgageqa #mortgageadvice #mortgagedownpayment Other loan options may require a smaller down payment, such as 3% to 5%. FHA loans, for example, require a 3.5% down payment, whereas VA loans may not require any down payment at all. If you need assistance in making mortgage decisions, reach out to the Adler Team for guidance. 954-649-2960

What is PMI, and do you need it? Private Mortgage Insurance (PMI) plays a pivotal role in home financing. It acts as a protective measure for lenders, especially prevalent in loans catering to first-time homebuyers or those opting for government-backed mortgages like FHA loans. PMI mitigates risk for lenders, but it does have broader implications for you, the borrower. Unlike conventional loans, where PMI can be eliminated once 20% equity is reached, it remains constant for the duration of certain loans, potentially affecting borrowers' financial landscape. Understanding the distinction between various loan types and their associated PMI requirements is important in navigating the complexities of mortgage lending. If you've got questions about this and how it might affect you, send me a message. I would love to chat. #tomshawrealtorteam #remaxpremierkc #pmi #privatemortgageinsurance #firsttimehomebuyer

Not sure what "MIP" means? Mortgage Insurance Premium (MIP) is an insurance policy used in FHA loans if your down payment is less than 20%. It protects lenders in case of a borrower defaults and allows borrowers to qualify for a mortgage when they might not meet the strict requirements of conventional loans. This means you can acquire your new home sooner, even if you're still building your savings. A small price to pay for such a big step towards your future! Learn more by visiting the HQM website now. 💻 #HomeBuyingTips #Mortgage101 #FHALoans #RealEstateTerms