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!

  • Alicia MartinAlicia Martin

    Jason was absolutely amazing to work with! From start to finish, he was professional, patient, and extremely knowledgeable. He took the time to walk me through each part of the process, making sure I understood everything clearly. What stood out most was how he provided personalized advice tailored to my specific credit situation—something you don’t always get. Jason made me feel seen and supported, and for the first time in a long time, I truly believe my financial goals are within reach. He even offered to follow up and encouraged me to reach out directly with any questions. Highly recommend working with him!

  • Matthew PadillaMatthew Padilla

    Michelle has been nothing short of exceptional throughout my entire loan readiness journey. She’s consistently gone above and beyond—always ready with valuable insights, up-to-date information, and clear, detailed explanations that made even the most complex concepts easy to understand. Her guidance has empowered me to make confident financial decisions and feel truly prepared for each step of the process.

    What sets Michelle apart is not just her knowledge, but her patience, professionalism, and genuine commitment to helping others succeed. She’s approachable, thorough, and clearly passionate about what she does.

    I highly recommend Michelle to anyone serious about improving their financial readiness. She’s truly a game-changer.

  • Marcus HollinsMarcus Hollins

    I’ve been a client now twice…first time the agent I spoke to did there job to assist me in improving my way of life. Today, April 25, 2025, I had the opportunity to speak with the most kind, understanding, and genuine women within a customer service roll. Alana not only went above and beyond to not only help with my account but she also showed compassion. We are living in a different time but when you interact with someone like Alana it makes you see and feel hope. Thank you for our conversation and all you did today, even just listening. Extremely Grateful! 🙏🏾

  • 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