Mortgage education from Jacob Shope
Private Mortgage Insurance (PMI) in Charlotte
PMI is one of the most misunderstood parts of conventional mortgage financing. It can add to the monthly payment, but it can also allow buyers to purchase without waiting until they have a 20% down payment.
What PMI is
Private mortgage insurance generally protects the lender when a conventional borrower makes a smaller down payment. The cost can vary based on several factors, including the loan structure and borrower profile.
The right question is not simply whether PMI exists. It is whether the total payment and cash-to-close make sense compared with another loan option or a larger down payment.
Questions buyers should compare
- How much does PMI add to the monthly payment?
- How much cash would a larger down payment require?
- Would FHA or another program create a better overall payment?
- How long do you expect to keep the home?
- What are the rules for eventually removing mortgage insurance?
Related mortgage guides
Want to compare payments with and without PMI?
Send me the purchase price and down payment you are considering and I can help you compare the structure.
Ask JacobWritten by Jacob Shope, Mortgage Loan Officer with Mpire Financial, NMLS# 2090979, serving Charlotte and Lake Norman.