The Ultimate Guide to Private Mortgage Insurance

Nomad™ No Points Comparing 3 Different PMI Options
Nomad™ No Points Comparing 3 Different PMI Options

What is Private Mortgage Insurance? How to avoid it as a buy-and-hold real estate investor, Nomad™ or house hacker or use it to your advantage.

In this class you'll learn:

  • What is Private Mortgage Insurance (PMI)? And, how to avoid it.
  • Some of the more common PMI providers and why you may care...
  • What primarily affects your PMI rate? What are additional adjustments?
  • How to calculate PMI
  • The range of monthly PMI amounts
  • 3 strategies to pay PMI
  • FHA and the PMI equivalent of MIP
  • The duration of MIP for FHA loans based on loan terms, down payment amount and application date
  • 3 ways to model Private Mortgage Insurance using The World's Greatest Real Estate Deal Analysis Spreadsheet™
  • The Homeowner's Protection Act of 1998 and how it relates to PMI
  • Cancelling PMI and improving cash flow
  • Sample Private Mortgage Insurance Cancellation letter for you to use to get your PMI cancelled
  • A deep dive into the impact of PMI and how you choose to pay it for a Nomad™ with zero points
  • How returns vary for appreciation, cash flow, debt paydown and depreciation based on how you choose to pay PMI
  • The impact of credit score on PMI - a deep dive into how it impacts returns
  • Persistent PMI myths that just won't die
  • Speculating on fast appreciating markets with PMI
  • Plus much more

Duration: 1 hours and 43 minutes
Recorded: January 22, 2020
Instructor: James Orr