![]() ![]() Once PMI is required, your mortgage lender will arrange it through their own insurance providers.But remember, it only protects lenders-not homeowners. PMI is a lot like any insurance policy where you make payments every month for coverage. But obviously no one likes losing money, so to make up the other 20%, lenders require buyers to pay for an insurance policy-the PMI-to protect themselves from potential loss.įun fact: Some people call it PMI insurance, but we prefer to lose the extra insurance and just call it PMI. Your lender then can foreclose your house and auction it off to earn back the money they loaned you.Īt a foreclosure auction, lenders can recover about 80% of a home’s value. The PMI fee goes toward insurance coverage that protects your lender- not you-in case you can’t make monthly payments and default on your loan. Private mortgage insurance (PMI) is a fee added to your mortgage if your down payment is less than 20% when buying a house or you’re borrowing more than 80% of the home price from a mortgage lender. ![]() Let’s take a look at what PMI is, how it works, how much it’ll cost you, and how you can avoid that sucker! Proper registration must be obtained before advice is offered.Once you make an offer on a home and move through the final steps of the mortgage approval process, you will probably encounter a new term: private mortgage insurance, or PMI. ![]() This is not an offer to sell or solicit securities in any other state or jurisdiction however, if you reside in a state other than a state listed, please inform us. Ramsey Financial Group currently has individuals registered to offer securities in the states of AL, FL, GA, IN, NE, NC, OH, PA, SC, VA, and licensed to offer insurance products in the states of FL, OH, PA and SC. Proper registration must be obtained before advice is offered. Ramsey Financial Group currently has individuals registered to offer securities in the states of AL, FL, IN, NE, NC, OH, PA, SC, VA, and licensed to offer insurance products in the states of FL, OH, PA and SC. Advisory services through Cambridge Investment Research Advisors,Inc., a Registered Investment Adviser. Ramsey Financial Group and Cambridge are not affiliated. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member of FINRA / SIPC. How much Disability Income Insurance do you need? Will you be able to afford nursing home care?Įstimate the potential cost of waiting to purchase a long-term care insurance policy. Knowing your likely life expectancy is an important factor in making long-term financial plans. How much life insurance would you need to produce a sufficient income stream for your family? This calculator is designed to help you attach a dollar figure to your life’s work. your expenses.Ī balance sheet summarizes your assets and liabilities and reveals your net worth. This Cash Flow Analysis form will help you weigh your income vs. How much do you need to save each year to meet your long-term financial goals?Įstimate the future value of your current savings.Ĭalculate the rate of return you would have to receive from a taxable investment to realize an equivalent tax-exempt yield. Use this calculator to estimate the cost of your child’s education, based on the variables you input. This calculator can help you determine whether you should consider converting to a Roth IRA. Use this calculator to determine whether you qualify for the different types of IRAs. This calculator can help you estimate your annual federal income tax liability.Ĭompare the potential future value of tax-deferred investments to that of taxable investments. Use this calculator to estimate how much income and savings you may need in retirement.Įstimate the annual required distribution from your traditional IRA or former employer's retirement plan after you turn age 73.Įstimate the future cost of an item based on today’s prices and the rate of inflation you expect.Įstimate how much would remain after paying income taxes and penalties if you took an early distribution from a retirement plan. Use this calculator to estimate the federal estate taxes that could be due on your estate after you die. How much can you afford to pay for a car? How much would your monthly lease payment be? This calculator can help you determine how soon you can pay off your mortgage. How much will it cost to pay off a loan over its lifetime?Įstimate of the maximum amount of financing you can expect to get when you begin house hunting.ĭetermine whether you should consider refinancing your mortgage. ![]()
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