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