All Topics > Real Estate Resources > Buying > Private Mortgage Insurance > What You Need to Know About Private Mortgage Insurance >

What You Need to Know About Private Mortgage Insurance Georgia

PMI lets you buy a house with less than 20 percent down -- in exchange for higher payments.

Local Companies

Capitol City Bank & Trust Company
(404) 752-6067
562 Lee St SW
Atlanta, GA

A & C Mortgage LLC
(678) 822-0400
3042 Oakcliff Rd
Atlanta, GA

AAA Direct Mortgage
(770) 448-7796
3955 Pleasantdale Rd
Atlanta, GA

Cummings Mortgage Co.
706-295-7165
111 Bridgepoint Plaza Ste 302
Rome, GA

Countrywide Mortgage Corporation
770-414-6600
100 Colony Square, 1175 Peachtree St.
Atlanta, GA

Novation Mortgage
678-698-3557
2501 E. Piedmont Road
Marietta, GA

Option 1 Finanical
678-232-0828
2380 Buford Dr Suite 106-328
Lawrenceville, GA

1st American Capital LLC
(404) 588-5500
191 Peachtree St Ne
Atlanta, GA

American Equity Mortgage
770-955-5700
200 Galleria Pkwy SE
Atlanta, GA

Allied Home Mortgage Capital Corp.
770-939-7075
2179 Northlake Pkwy
Tucker, GA

provided by:

Private mortgage insurance is just what the name implies: insurance that covers the lender in case the home buyer defaults. If you put less than 20 percent down on most mortgages, chances are your lender will require you to have private mortgage insurance, commonly known as PMI.

Unless you have a government-insured loan, such as an FHA or VA loan, you don’t have much choice in the matter. And the benefit of private mortgage insurance is it allows you to buy the home you want even if you don’t have a large down payment. The lender will obtain private mortgage insurance for you.

Paying private mortgage insurance

There are a couple of ways to handle your private mortgage insurance payment.

One popular payment method is to include private mortgage insurance as part of your monthly mortgage payment. PMI generally costs about one-half of 1 percent of the cost of your house, or $75 a month for an $180,000 mortgage.

Another way of paying for private mortgage insurance is to finance it when you get the mortgage. That would generally increase your interest rate, possibly by one-half of 1 percent. Mortgage interest is likely tax-deductible while private mortgage insurance may not be. (Consult a tax advisor about your situation.)

You can cancel PMI

You don’t have to pay PMI forever. You can ask to have it canceled after you have built up 20 percent equity in your home. This means if your home is worth $200,000, you have at least $40,000 in equity in your home. And you don’t have to pay down your mortgage to build equity, either. If you have made significant home improvements or your property has appreciated significantly in value, you may be able to cancel private mortgage insurance even earlier. The lender may require you to pay for an appraiser to establish your home’s value in today’s market.

If you signed your mortgage on or after July 29, 1999, a federal law requires lenders to automatically – with a few exceptions – cancel your private mortgage insurance once you have paid 22 percent of the principal based on the original loan amount.

Lenders do have some leeway to refuse to cancel your PMI if you are not current on your payments, if there are liens against the property or if you have an exceptional amount of debt based on your income.

Some people avoid private mortgage insurance by getting a small home equity loan to “piggyback” on the mortgage. The piggyback loan pays for the rest of the down payment so the buyer is able to put 20 percent down. These loans carry a higher interest rate than the mortgage, but the interest may be tax-deductible. A financial advisor can help you figure out how to determine if private mortgage insurance is the best way for you to buy a home.

Published on July 13, 2007

Read full article at realestate.com

Featured Local Company

Capitol City Bank & Trust Company

(404) 752-6067
562 Lee St SW
Atlanta, GA

Read more about What You Need to Know About Private Mortgage Insurance

- How much to put down on a home Georgia

Unsure about how much you need to save in order to make a down payment on a home? There are several options.

- Cancellation of private mortgage insurance Georgia
- Mortgage Life Insurance Georgia
- Private Mortgage Insurance Georgia
- Cash-out Mortgage Refinancing Georgia
- Low down payment? A piggyback loan or PMI can help Georgia
- Canceling private mortgage insurance Georgia
- A HUD Reverse Mortgage For Retirement Georgia
- Do I have to have private mortgage insurance Georgia
- How can I cancel private mortgage insurance? Georgia

Regional Articles

- Do I have to have private mortgage insurance Georgia

Depending on your situation, there may be alternatives to expensive PMI.

- Canceling private mortgage insurance Georgia
- A HUD Reverse Mortgage For Retirement Georgia
- Mortgage Life Insurance Georgia
- How can I cancel private mortgage insurance? Georgia
- Cancellation of private mortgage insurance Georgia
- How much to put down on a home Georgia
- Cash-out Mortgage Refinancing Georgia
- Low down payment? A piggyback loan or PMI can help Georgia
- Private Mortgage Insurance Georgia

Related Local Event

2Nd Annual Real Estate Industry Day
Dates: 9/18/2009 - 9/18/2009
Location: Holiday Inn Decatur
Decatur, GA
View Details

Advertising	Food & Beverage	Nightlife
Business Services	Franchise	Online Database
Career	Health	Pets
Cars	Holidays	Real Estate Resources
Computer Hardware	Home Appliances	Retail & Consumer Services
Construction	Home Electronics	Software
Education	Home Services	Technology
Entertainment	Industrial Goods & Services	Telecommunications
Environmental	Insurance	Trade Shows
Family	Internet	Travel
Fashion	Legal	Weddings
Financial Services	Miscellaneous	World History

Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History