How to Refinance Without PMI

By Business & Finance Last updated Friday, May/10/2024

1). Wait until you have enough equity in the home. Schedule a home appraisal to learn the value of your property. Divide the mortgage loan balance by the home appraisal to determine how much equity you have. For example, if you owe $130,000, and the property's worth $162,000, you've acquired 80 percent equity and do not have to pay PMI.
2). Use a down payment. Give your lender a down payment of at least 20 percent of the new mortgage balance to give your property instant equity and avoid PMI.
3). Acquire two mortgages to avoid PMI. Discuss alternative home loan options with your broker. For example, get a first mortgage for 80 percent of the balance and a second mortgage for the remaining 20 percent; or put down a 10 percent down payment and acquire a second mortgage for the remaining 10 percent.

Stay informed and read the latest news today from The ThatBiz Online, the definitive source for independent journalism from every corner of the globe.