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!

  • Lacey ThompsonLacey Thompson

    I have been working with UQUAL for a year now and service is consistently thorough. Today I had concerns and inquiries about my credit report, Christopher Ruby was extremely helpful and answered my questions one by one. He explained each situation and provided possible actions to take. I appreciated not feeling like my inquiries were meaningless, instead I was validated and educated. I learned a lot and ended the conversation feeling more confident. Again, thank you to Christopher Ruby. Your support was appreciated.

  • Sandra AllahSandra Allah

    I was so pleased and thankful after speaking with Ms. Ashley Crowley today. She listened patiently then answered all my unanswered questions that I have. She gave me so much knowledgeable information and points to use at my financial institution which was very successful in my acquiring a loan. I am so thankful , relieved and very grateful of her advice and was very impressed of how knowledgeable she was in answering my questions and concerns. I recommend her highly to anyone that needs financial advise and I will definitely refers her to family and friends

  • Sherri DeShaySherri DeShay

    Dear Megan /Uqual,

    I wanted to take a moment to express my sincere gratitude for your exceptional guidance as my loan readiness coach. Your in-depth knowledge of the process, clear communication, and continuous encouragement have made a significant impact on my journey toward financial success. You took the time to explain every step of the process and made me feel confident and well-prepared to address my challenges.

    Your informative and helpful approach not only clarified my doubts but also motivated me to take bold steps toward achieving my goals. I truly appreciate the effort you put into ensuring I understood all aspects of my credit health process and felt supported every step of the way.

    Thank you for being such an inspiring and reliable coach. I am grateful for your expertise and kindness, and I look forward to sharing my success story with others, thanks to your invaluable help.

    With heartfelt thanks,
    Sherri D

  • Magaly GutierrezMagaly Gutierrez

    Christopher really made me feel confident that I’ll get to where I want to be with my credit! Slowly but surely. I appreciate the advice, the honesty, and how real they were throughout the process. Definitely recommend!