{"id":15765,"date":"2018-02-01T09:19:44","date_gmt":"2018-02-01T17:19:44","guid":{"rendered":"https:\/\/www.hayden-homes.com\/?p=15765"},"modified":"2024-06-04T14:10:49","modified_gmt":"2024-06-04T22:10:49","slug":"blog-private-mortgage-insurance","status":"publish","type":"post","link":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/","title":{"rendered":"What Is Private Mortgage Insurance and How Do I Avoid Paying it?"},"content":{"rendered":"<p>When you are <a href=\"https:\/\/www.hayden-homes.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">buying a new home<\/a> and asking a lender for a mortgage loan, there are a lot of different documents and financial terms that you will need to review and become familiar with. And depending upon your financial situation, you may be asked to purchase Private Mortgage Insurance (PMI) in order to qualify for your loan. Here\u2019s an overview regarding what you need to know about private mortgage insurance, and how you may be able to avoid paying it:<br \/>\n<strong><a href=\"\/blog\/wp-content\/uploads\/2017\/06\/Buying-a-New-home-in-Oregon-Washington-or-Idaho.jpg\"><img loading=\"lazy\" class=\"aligncenter size-medium wp-image-12413\" src=\"\/blog\/wp-content\/uploads\/2017\/06\/Buying-a-New-home-in-Oregon-Washington-or-Idaho-300x200.jpg\" alt=\"Buying a new home with Zero down home loan - USDA\" width=\"300\" height=\"200\" \/><\/a>Private Mortgage Insurance &#8211; What\u2019s That?<\/strong><br \/>\nPrivate mortgage insurance, or PMI, is a type of insurance that protects the lender from losing money if the borrower ends up not making payments on their loan, eventually resulting in foreclosure.<br \/>\nPMI isn\u2019t always required, and there are many homeowners throughout the nation who do not have PMI coverage. However, your lender may require you to purchase PMI if:<\/p>\n<ul>\n<li>You are asking for a conventional loan; and<\/li>\n<li>You are making a down payment of less than 20 percent.<\/li>\n<\/ul>\n<p><strong><a href=\"\/blog\/wp-content\/uploads\/2024\/06\/How-much-does-PMI-cost.jpg\"><img loading=\"lazy\" class=\"aligncenter wp-image-15769 size-medium\" src=\"\/blog\/wp-content\/uploads\/2018\/02\/How-much-does-PMI-cost-300x200.jpg\" alt=\"How-much-does-PMI-cost\" width=\"300\" height=\"200\" \/><\/a>How Much Does PMI Cost?<\/strong><br \/>\nHow much you have to pay for private mortgage insurance depends upon how much you are borrowing, with <a href=\"https:\/\/www.bankrate.com\/finance\/mortgages\/the-basics-of-private-mortgage-insurance-pmi.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">Bankrate.com<\/a> explaining that the average rate is between .3 and 1.5 percent of the original loan amount per year, with a lower percentage being based on a greater down payment amount. <a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-private-mortgage-insurance-en-122\/\" target=\"_blank\" rel=\"noopener noreferrer\">ConsumerFinance.gov<\/a> describes more about the process of making payments, detailing that premiums are typically added to the monthly mortgage payment. It\u2019s important that you review your loan disclosure and closing documents so that you know exactly how much you may be liable for.<br \/>\n<strong><a href=\"\/blog\/wp-content\/uploads\/2024\/06\/You-and-Free-Couple-Sipping-Wine.jpg\"><img loading=\"lazy\" class=\"aligncenter wp-image-15770 size-medium\" src=\"\/blog\/wp-content\/uploads\/2018\/02\/You-and-Free-Couple-Sipping-Wine-300x200.jpg\" alt=\"How to avoid paying Private Mortgage Insurance\" width=\"300\" height=\"200\" \/><\/a>How to Avoid Paying for Private Mortgage Insurance<\/strong><br \/>\nThere are drawbacks and advantages to PMI. The biggest advantage is that if you agree to purchase PMI, you may be able to qualify for a loan that you otherwise would not be eligible for; the biggest drawback is that you have to pay more every month to insure your loan. It is very important that you discuss your options with your lender before you commit to anything.<br \/>\nIt is sometimes possible to secure a conventional loan without PMI even if you don\u2019t put 20 percent down. In exchange, you may be offered the loan at a higher interest rate. There are also other types of loans available that you may consider, such as FHA loans. Read our post on <a href=\"https:\/\/www.hayden-homes.com\/determine-home-loan-right\/\" target=\"_blank\" rel=\"noopener noreferrer\">How to Determine which home loan is right for you!<\/a><br \/>\n<strong><a href=\"\/blog\/wp-content\/uploads\/2013\/12\/Waterbrook-Web-Ready-21.jpg\"><img loading=\"lazy\" class=\"aligncenter size-medium wp-image-11958\" src=\"\/blog\/wp-content\/uploads\/2013\/12\/Waterbrook-Web-Ready-21-300x143.jpg\" alt=\"Spacious New Hayden Homes\" width=\"300\" height=\"143\" \/><\/a>Hayden Homes Can help Get you get into Your Dream Home<\/strong><br \/>\nBeing a homebuyer who is looking into buying a new home, even if it\u2019s not your first home, comes with a number of questions. At Hayden Homes, we can help you answer those questions and get into your dream home.\u00c2\u00a0 To view our new homes for sale throughout the northwest, including in <a href=\"https:\/\/www.hayden-homes.com\/state\/new-homes-washington\/\" target=\"_blank\" rel=\"noopener noreferrer\">Washington<\/a>, <a href=\"https:\/\/www.hayden-homes.com\/state\/new-homes-oregon\/\" target=\"_blank\" rel=\"noopener noreferrer\">Oregon<\/a>, and <a href=\"https:\/\/www.hayden-homes.com\/state\/new-homes-idaho\/\" target=\"_blank\" rel=\"noopener noreferrer\">Idaho<\/a>, call our Online Home Concierge today at 541-797-0097, or <a href=\"https:\/\/www.hayden-homes.com\/contact\/\" target=\"_blank\" rel=\"noopener noreferrer\">contact us online<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you are buying a new home and asking a lender for a mortgage loan, there are a lot of different documents and financial terms&#8230;<\/p>\n","protected":false},"author":2,"featured_media":12413,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[87],"tags":[72,160,140],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.2.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Private Mortgage Insurance and How do I Avoid Paying It? | Hayden Homes Blog<\/title>\n<meta name=\"description\" content=\"Looking at buying a home? Here\u00e2\u20ac\u2122s an overview on Private Mortgage Insurance, what you need to know, and how you may be able to avoid paying it. Read more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Private Mortgage Insurance and How do I Avoid Paying It? | Hayden Homes Blog\" \/>\n<meta property=\"og:description\" content=\"Looking at buying a home? Here\u00e2\u20ac\u2122s an overview on Private Mortgage Insurance, what you need to know, and how you may be able to avoid paying it. Read more.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/\" \/>\n<meta property=\"og:site_name\" content=\"Front Door Blog by Hayden Homes\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-01T17:19:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-04T22:10:49+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Amanda Kruit\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#website\",\"url\":\"https:\/\/www.hayden-homes.com\/blog\/\",\"name\":\"Front Door Blog by Hayden Homes\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.hayden-homes.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#webpage\",\"url\":\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/\",\"name\":\"What is Private Mortgage Insurance and How do I Avoid Paying It? | Hayden Homes Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#primaryimage\"},\"datePublished\":\"2018-02-01T17:19:44+00:00\",\"dateModified\":\"2024-06-04T22:10:49+00:00\",\"author\":{\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#\/schema\/person\/d0d5ae422927dc064fca4db5cf94ec9d\"},\"description\":\"Looking at buying a home? Here\\u00e2\\u20ac\\u2122s an overview on Private Mortgage Insurance, what you need to know, and how you may be able to avoid paying it. Read more.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.hayden-homes.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What Is Private Mortgage Insurance and How Do I Avoid Paying it?\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#\/schema\/person\/d0d5ae422927dc064fca4db5cf94ec9d\",\"name\":\"Amanda Kruit\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/www.hayden-homes.com\/blog\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/612788d5ef98cc2e743221db08441140?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/612788d5ef98cc2e743221db08441140?s=96&d=mm&r=g\",\"caption\":\"Amanda Kruit\"},\"url\":\"https:\/\/www.hayden-homes.com\/blog\/author\/amanda\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What is Private Mortgage Insurance and How do I Avoid Paying It? | Hayden Homes Blog","description":"Looking at buying a home? Here\u00e2\u20ac\u2122s an overview on Private Mortgage Insurance, what you need to know, and how you may be able to avoid paying it. Read more.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/","og_locale":"en_US","og_type":"article","og_title":"What is Private Mortgage Insurance and How do I Avoid Paying It? | Hayden Homes Blog","og_description":"Looking at buying a home? Here\u00e2\u20ac\u2122s an overview on Private Mortgage Insurance, what you need to know, and how you may be able to avoid paying it. Read more.","og_url":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/","og_site_name":"Front Door Blog by Hayden Homes","article_published_time":"2018-02-01T17:19:44+00:00","article_modified_time":"2024-06-04T22:10:49+00:00","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Amanda Kruit","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/www.hayden-homes.com\/blog\/#website","url":"https:\/\/www.hayden-homes.com\/blog\/","name":"Front Door Blog by Hayden Homes","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.hayden-homes.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#primaryimage","inLanguage":"en-US","url":"","contentUrl":""},{"@type":"WebPage","@id":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#webpage","url":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/","name":"What is Private Mortgage Insurance and How do I Avoid Paying It? | Hayden Homes Blog","isPartOf":{"@id":"https:\/\/www.hayden-homes.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#primaryimage"},"datePublished":"2018-02-01T17:19:44+00:00","dateModified":"2024-06-04T22:10:49+00:00","author":{"@id":"https:\/\/www.hayden-homes.com\/blog\/#\/schema\/person\/d0d5ae422927dc064fca4db5cf94ec9d"},"description":"Looking at buying a home? Here\u00e2\u20ac\u2122s an overview on Private Mortgage Insurance, what you need to know, and how you may be able to avoid paying it. Read more.","breadcrumb":{"@id":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.hayden-homes.com\/blog\/blog-private-mortgage-insurance\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.hayden-homes.com\/blog\/"},{"@type":"ListItem","position":2,"name":"What Is Private Mortgage Insurance and How Do I Avoid Paying it?"}]},{"@type":"Person","@id":"https:\/\/www.hayden-homes.com\/blog\/#\/schema\/person\/d0d5ae422927dc064fca4db5cf94ec9d","name":"Amanda Kruit","image":{"@type":"ImageObject","@id":"https:\/\/www.hayden-homes.com\/blog\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/612788d5ef98cc2e743221db08441140?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/612788d5ef98cc2e743221db08441140?s=96&d=mm&r=g","caption":"Amanda Kruit"},"url":"https:\/\/www.hayden-homes.com\/blog\/author\/amanda\/"}]}},"_links":{"self":[{"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/posts\/15765"}],"collection":[{"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/comments?post=15765"}],"version-history":[{"count":2,"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/posts\/15765\/revisions"}],"predecessor-version":[{"id":39662,"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/posts\/15765\/revisions\/39662"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/media\/12413"}],"wp:attachment":[{"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/media?parent=15765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/categories?post=15765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hayden-homes.com\/blog\/wp-json\/wp\/v2\/tags?post=15765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}