How to Reduce or Eliminate Private Mortgage Insurance

1
(No Transcript)
2
How to Reduce or Eliminate Private Mortgage
Insurance

• Homebuyers that can't afford to put 20 down on
  the purchase price of their new home often opt to
  take out private mortgage insurance (PMI) with
  their lender to help seal the deal. This
  insurance protects the lender from a default, and
  can add more than 100 to a monthly mortgage
  payment.
•  
• Refinance Your Loan
•  
• Firefighters with a high interest rate on their
  mortgage and PMI might qualify for a mortgage
  refinance that could not only reduce their
  interest rate, but also eliminate PMI.

3

• The PMI rules under any new loan terms are still
  the same pay 20 or the home has to appraise
  higher than the original loan. Homeowners usually
  have to pay for the appraisal, but if the home
  value increases, it could be a win-win situation.
•  
• Firefighters with FHA-insured loans can refinance
  and obtain the lower annual Mortgage Insurance
  Premium. For most FHA loans this will reduce the
  annual premium from 1.35 percent of the loan
  balance to .85 percent. HUD explained that they
  expect 100,000 to 200,000 FHA-insured borrowers
  to refinance in the next year.
•  
• For more information visit us www.americanheromort
  gage.com

4
(No Transcript)