For homebuyers1 min read
Private mortgage insurance, explained
Why PMI shows up on some loans, what it costs you, and how it comes off once you've built enough equity.
What PMI is
Private mortgage insurance protects the lender, not you, when a conventional loan is made with less than 20% down. It's added to your monthly payment as a way to make a low-down-payment loan possible.
It isn't necessarily permanent
On a conventional loan, PMI can typically be removed once you've built enough equity, either by paying the balance down or as the home's value rises. That's a key difference from FHA loans, where the mortgage insurance often stays for the life of the loan.
Weighing it
PMI is the cost of buying sooner with less cash up front. For many buyers that trade is worth it; for others, a larger down payment or a different program avoids it. Your loan officer can show what each path costs per month.
Questions about your own file?
A loan officer licensed in your state can run your actual numbers.
Keep reading
For homebuyers1 min read
Preparing for pre-approval
What a loan officer looks at, the documents worth gathering early, and how pre-approval differs from pre-qualification.
For homebuyers1 min read
How your credit affects your loan
What lenders look at beyond the score, how credit shapes your options, and the moves to avoid once you're shopping.
For homebuyers1 min read
How much down payment you need
The 20% figure is a myth for most buyers. Here's what the low-down-payment programs allow and the trade-offs to weigh.
This guide is general information, not financial advice, a quote, or loan terms. Program availability and qualification vary. ALCOVA Mortgage LLC, NMLS #40508 (www.nmlsconsumeraccess.org). Equal Housing Lender.