Minnesota First Time Home Buyer Real Estate Blog

How To Get Rid of Mortgage Insurance

Many homeowners often ask me how to get rid of their mortgage insurance. Typically, you need about 20% equity in your home, whether that was from a 20% down payment or from paying enough of your mortgage balance. However, there are some types you can’t get rid of, such as FHA insurance or those with more stringent guidelines. You’ll often be given multiple options you’ll want to weigh out when purchasing a property. We’re happy to help you figure out the best plan and answer any other questions you have.


What First-Time Homebuyers Need to Know About PMI

First-time homebuyers ask us all the time: “What is PMI?” PMI stands for private mortgage insurance, which you will have to pay if you put down less than 20% on a home. This added layer of insurance protects the lender’s investment in the property. If you put down 3.5%, for example, that means the lender owns 96.5% of the home, and PMI makes sure they’re covered for that full amount if you can’t repay that debt. Essentially, the more money you can put down, the less your PMI will be on a monthly basis. To hear our full message explaining what PMI is, watch my latest video.