Skip To Content

    How Private Mortgage Insurance Can Help You Buy a Home in Albuquerque

    For home buyers in Albuquerque who plan to buy a home using a low down payment loan, there’s a type of insurance you should know about – Private Mortgage Insurance (PMI). 

    There are several mortgage options that offer low down payments, but if you intend on getting one of these types of loans, it’s best to learn about Private Mortgage Insurance. How can Private Mortgage Insurance help you buy a home in Albuquerque?

    Here’s how Freddie Mac defines PMI:

    “An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%. Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

    There are several different ways to pay for PMI. Some lenders may offer more than one option, while other lenders do not. Before agreeing to a mortgage, ask lenders what choices they offer.

    The most common way to pay for PMI is a monthly premium.

    • This premium is added to your mortgage payment.
    • The premium is shown on your Loan Estimate and Closing Disclosure on page 1, in the Projected Payments section. You will get a Loan Estimate when you apply for a mortgage, before you agree to this mortgage.
    • The premium is also shown on your Closing Disclosure on page 1, in the Projected Payments section.

    Sometimes you pay for PMI with a one-time up-front premium paid at closing.

    • This premium is shown on your Loan Estimate and Closing Disclosure on page 2, in section B.
    • If you make an up-front payment and then move or refinance, you may not be entitled to a refund of the premium.

    Sometimes you pay with both up-front and monthly premiums.

    • The up-front premium is shown on your Loan Estimate and Closing Disclosure on page 2, in section B.
    • The premium added to your monthly mortgage payment is shown on your Loan Estimate and Closing Disclosure on page 1, in the Projected Payments section.

    Lenders might offer you more than one option. Ask the loan officer to help you calculate the total costs over a few different timeframes that are realistic for you.

    Are you planning to buy a home in Albuquerque and have questions about home loans and PMI? Please contact the Sandi Pressley team today for more information.

    Make sure to join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.

    HOT HOME LISTING OF THE WEEK!

    13516 Deer Trail Place NE, Albuquerque, NM 87111  $895,000

    This image has an empty alt attribute; its file name is 13516%20Deer%20Trail%20Place%20NE,%20Albuquerque,%20NM%2087111.jpg

    6 Bedrooms / 4 Bathrooms (3 full, 1 half) / 5893 Square Feet

    Perfectly situated with 180 degree views in Glenwood Hills. The frosted glass accented front door greets you and beyond is a wide, open floorplan, with tons of natural light, gas fireplace and wet bar making this home perfect for entertaining. Main level boasts a master suite, 2 spacious bedrooms, formaldining and well-appointed kitchen with breakfast nook and access to one of many patios. Upstairs is another master suite with jetted tub and double sinks, privatebalcony and a fantastic walk-in closet. The garden level is open to the patios and is perfect for rec room/office/gym. Want city AND mountain views this uniqueproperty offers panoramic, breathtaking city views with Mount Taylor in the distance! Hiking, biking and walking trails are just minutes away.

    Contact the Sandi Pressley team for additional details! 

    Get your Morning Inspiration with the Sandi Pressley Team

    Trackback from your site.

    Sandi Pressley

    Albuquerque New Mexico Real Estate YOUR SOURCE FOR ALBUQUERQUE REAL ESTATE! Sandi Pressley offers unparalleled service to ALL clients in Albuquerque and surrounding communities in the New Mexico real estate market. Sandi's motto is "Putting You First." Your complete satisfaction with our service and representation is our number one priority. As a native of Albuquerque, Sandi Pressley has been dedicated to serving her client's real estate needs for over 42 years. Sandi has achieved a goal unprecedented by any other Realtor of being the #1 Top Producing Realtor for 35 consecutive years in all of Albuquerque as well as the entire state of New Mexico. She is also the #1 Top Producing Realtor for the entire Western Region and 8th in the Nation with Coldwell Banker National. Sandi Pressley serves the entire Albuquerque New Mexico real estate market including the surrounding communities such as Rio Rancho, Placitas, Corrales, Bernalillo, Northeast Heights, North Albuquerque Acres, Sandia Heights, High Desert, Foothills, Four Hills, UNM, Nob Hill, Ridgecrest area, Uptown area, North Valley, Northwest Heights, Paradise Hills, South Valley, Southwest Heights, Bosque Farms, Los Lunas, Cedar Crest, Tijeras, and all East Mountain areas. Whether you are considering buying a home, selling a home or both, we know these areas inside and out.

    Leave a Reply