The estimated Private Mortage Insurance cost on a $300,000 home with $5,000 down, a 7% interest rate, and a great credit score between 700 and 719 is $172 – That equates to $61,920 over the life of the loan.... If you have less than ideal credit it only skyrockets from there

January 23, 2024 

What is Private Mortgage Insurance – and how can you get rid of it?

If you’ve made the decision to make 2024 the year you buy a house, you may have prepared yourself for the cost of your mortgage payment – but have you prepared for another payment you’ll have to have on top of your mortgage if you’re making a down payment of less than 20%?

If you’re buying your first home, 20% down is probably a tall task. Putting 3.5% down might be easier for you, but what you may not know is that putting less than 20% will cost a little more monthly (which isn’t always a bad thing). However, this might not necessarily be part of your mortgage payment but an additional fee called Private Mortgage Insurance.

When you start to look at houses, you might be tempted to streeetch your price range just in case your dream home is a little outside of your budget.. If you prepare for this early, it could help you get approved for just a little more so you can buy that dream home.

Now, you may be asking yourself; what is this cost and how much do I have to prepare for it?

Private Mortgage Insurance (PMI) is the “cost” of putting a small down payment, and it can go up or down based on your credit score just like your mortgage payment. Here’s an example for you: Let’s say you’re buying a $300,000 home, with $5,000 for a down payment and a 7% interest rate… your monthly PMI payment could be $362 – or it could be as low as $172 if you have great credit (700-719).

Here at UQUAL, our job is to get you ready for these bumps in the road. If you’re seeing this, chances are your loan officer would love to be your guide and ally through this complicated journey, and they trust UQUAL to be your partner through this process as well.

If you have ANY interest in buying a house in 2024 – a phone call is free.

Click here to sign up for a free consultation.

Your future self will thank you!

  • Nastassie PickettNastassie Pickett

    We have only been with Uqual for a little over a month but we have seen such great progress on our credit report and score in a short time. Hannah was very helpful and friendly on my first check in with the advisor team. She reviewed the progress thus far and provided recommendations moving forward to continue to increase our scores.

  • Edilberta CoyoteEdilberta Coyote

    I usually don't write reviews unless someone actually deserves it , but after the experience that I’ve had with Mandolin Raper I had to write this review she deserves a 10 🌟 review. I love the fact that She went above and beyond to guide step by step and advise me on what we're my priorities to fix. It's really hard to find an agent that treats you with kindness and respect. This made me feel appreciated and valued not only as a customer, but as a person. She got things done in a matter of minutes something I didn't get with other companies I've called. If it wasn't because of Mandolin's professionalism I would've called someone else like I did before I called UQUAL. Mandolin definitely knows what she is doing she gained my trust right away. Definitely recommend her and the company. Thank you again Mandolin Raper.

  • Amy VictorAmy Victor

    Usual was helpful with repairing credit. I signed up with the intention of improving my credit to get qualified floor a home loan. One I accomplished my goal of closing on a house, it was incredibly difficult to cancel. I spent over an hour on the phone trying to cancel where I was pressured into keeping the account open. 4 months after closing on my house, I spent another 30 minutes on the phone to cancel my services. This is very frustrating. I would not use their services again specifically for this reason.

  • A PA P

    I cannot recommend UQUAL enough for anyone seeking credit counseling.

    Chris was able to give me guidance and support even when I was feeling overwhelmed and emotional, Chris remained patient, understanding, and supportive. He walked me through the steps I needed to take to improve my credit, providing clear explanations and practical advice. His words of wisdom about building credit back up were incredibly helpful and motivating.
    I am truly grateful for Chris's expertise and compassion. He made what could have been a daunting process much easier and more manageable. If you're looking for a credit counseling coach or company who truly cares about your financial well-being, I highly recommend UQUAL.