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PMI Isn’t An Excuse Not to Buy a Home

PMI or Private Mortgage Insurance is the cost of buying a home with less than 20% down using an FHA loan.  However, it’s not an evil bill that you have to pay every month.  It’s not a prohibitive expense that will keep you from being able to make your monthly payment.  However, home owners are making, on average, $13,000 a year in increased home equity value, far out-pacing the loss from any PMI.  PMI isn’t an excuse not to buy a home – it’s a way to make sure that you can!

While the people avoiding PMI are trying to save up to buy a house with 20% down, you can buy a home RIGHT NOW using an FHA Loan.  Save up 3.5% and you can get moved in.  It’s that easy.  An FHA Loan comes with PMI, but WHO CARES?  Listen, homes are skyrocketing in value right now.  The housing market is tight, and houses are selling fast, as quickly as the first day on the market.  The time to buy is right now, if you are interested in accruing value.

Where people get hung up is on the fact that PMI is insurance for the lender, not the buyer.  That’s true.  PMI secures the lender against a default on the loan and helps make lending the money more palatable.  However, it does also benefit the buyer in a different sense.  PMI is the vehicle that allows lenders to take on riskier loans, like FHA, where they take less money up front and finance the loan.  This lets you buy the house with less money and start accruing all of that equity.  You start building wealth now, instead of saving up for years while paying rent somewhere else.

This is a unique time in American homebuying history.  Interest rates are still low, but could rise quickly.  You may be missing out on your chance to become a homebuyer.  Owning a home is the surest path to wealth building, as it is a forced savings account.  It’s one of the few assets you can own that generally appreciates in value, and will continue to gain value.  Housing is also a necessary expense, so why not put that expense towards owning something instead of throwing it away on rent?

Get pre-approved today and start shopping for your home so you can get on the train to financial independence and own something when you are ready to retire.

Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656.  You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you.  Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?

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