What You Need to Know About Private Mortgage Insurance (PMI)  Courtesy of Utah Realty

What You Need to Know About Private Mortgage Insurance (PMI) | MyKCM

Whether it is your first time or your fifth, it is always important to know all the facts when it comes to buying a home. With the large number of mortgage programs available that allow buyers to purchase homes with down payments below 20%, you can never have too much information about Private Mortgage Insurance (PMI).

What is PMI?

Freddie Mac defines PMI as:

“An insurance policy that protects the lender if you are unable to pay your mortgage. It’s a monthly fee, rolled into your mortgage payment, that is required for all conforming, conventional loans that have down payments less than 20%.

Once you’ve built equity of 20% in your home, you can cancel your PMI and remove that expense from your mortgage payment.”

As the borrower, you pay the monthly premiums for the insurance policy, and the lender is the beneficiary. Freddie Mac goes on to explain that:

“The cost of PMI varies based on your loan-to-value ratio – the amount you owe on your mortgage compared to its value – and credit score, but you can expect to pay between $30 and $70 per month for every $100,000 borrowed.” 

According to the National Association of Realtors, the average down payment for all buyers last year was 13%. For first-time buyers, that number dropped to 7%, while repeat buyers put down 16% (no doubt aided by the sale of their homes). This just goes to show that for a large number of buyers last year, PMI did not stop them from buying their dream homes.

Here’s an example of the cost of a mortgage on a $200,000 home with a 5% down payment & PMI, compared to a 20% down payment without PMI:What You Need to Know About Private Mortgage Insurance (PMI) | MyKCMThe larger the down payment you can make, the lower your monthly housing cost will be, but Freddie Mac urges you to remember:

“It’s no doubt an added cost, but it’s enabling you to buy now and begin building equity versus waiting 5 to 10 years to build enough savings for a 20% down payment.”

Bottom Line

If you have questions about whether you should buy now or wait until you’ve saved a larger down payment, let’s get together to discuss our market’s conditions and help you make the best decision for you and your family.

0 Comments

Will Home Prices Continue to Increase

Will Home Prices Continue to Increase

There are many unsubstantiated theories about what is happening with home prices. From those who are worried that prices are falling (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational...

Is your Moving Company Safe?

Find out on this Federal Website if the Moving company you want to use is safe.    Moving Company Nightmare Courtesy of KSL.com KSL Investigates: A moving company nightmare

Home Affordability Factors

https://bit.ly/2P552tr Don't tell anyone but here is the secret link to daily home updates! Click Here How does my home compare to my Neighbors? Find out at Home Value

Buy now or Wait

https://bit.ly/2NgbA6L   Call us today to talk to a Master Certified Negotiation Expert & Certified Residential Specialist! Find out your options. ITS FREE TO ALL CONNECT UTAH MEMBERS Text or Voice Marty @ 801-205-3500 Laurie @...

The Difference an Hour Will Make This Fall

National Hottest Real Estate Markets

Salt Lake City used to be one of the hottest real estate markets in the country, but now is ranked No. 116 out of 300 metros in the month of August, according to Realtor.com. Salt Lake is a "slightly hot" market that is "cooling down." Median...

The Difference an Hour Will Make This Fall

Days on Market April to June of 2018

Hot Sellers Market is Cooling of as Fall Approaches   Stats are for April, May, and June of 2018 Secong Quarter of 2018 (April-June) An article in Realtor Magazine. The fall season is cooling down more than the temperature outside; it's also putting a...

The Difference an Hour Will Make This Fall

Real Estate Reality Show Myths

https://bit.ly/2w14Wve   Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there, watching entire seasons of “Love it or List it,” “Million Dollar Listing,” “House...

The Difference an Hour Will Make This Fall

What does Backup Offer Mean

Please keep in mind that most listing status changes must be made within three (3) business days of the date the status change occurs, with the exception of listings which are Canceled (change within 24 hours) and listings which are Sold (change within 5 business...

Mortgage Lending Video 2

Now that you're ready, it's time to get Pre-Approved. Let's take a look at how that works! Find the Right Lender for You! Our Trusted Lenders

Closing The Sale Video 5

Your offer got accepted, CONGRATULATIONS! But don't start moving in yet, there is still the Escrow process which takes an average of 30 days but can be as long as 6 months or as short as 3 days! Our Title People are Real Super Heroes!

The Offer Video 4

The Offer Video 4

It's everything you dreamed of! The perfect size, ideal floor plan, prime location, you have no problem calling this "Home" .... except it's not your's yet. Let's get into the Offer and Negotiation Process! Here's a little tip. Find a real certified...

The Home Search Video 3

Time to start your home search! The best way  to get homes you like is to use our Exclusive Home Search Tool!  We Bring You Newly Listed Properties When Ever any Broker or Agent in the State Lists a Property!

Buying a Home in Utah

  Sometimes I don't use all 8 of my Designations my friends >>>.... But sometimes I do! Don't settle for less go with the Best! Martin Gale, MCNE, CNE, CPRES, CRS, ABR, CDPE, SFR, EPRO. OVER 30 YEARS FULL TIME EXPERIENCE   [video...

Find An Experienced Realtor

87% of real estate agents fail in the first 5 years of entering the industry, according to The National Association of Realtors. 75% of you fail in the very first year, according to NAR. Ouch! Those numbers are sobering for sure, but they are...

The Difference an Hour Will Make This Fall

Highest Median Prices in Salt Lake County

Article courtesy of Salt Lake Board of Realtors Salt Lake County home prices continued to climb in the second quarter of 2018, according to the Salt Lake Board of Realtors®. The median single-family home price in the April-through-June period increased to...

2019 to 2023 The next 4 years

What is Utah Real Estate Going to do in the next 3- 4 years? If interest rates creep up to about 5% the inventories will fatten up and prices will either adjust down ever so slightly or remain the same for the next 18 months. A giant elephant in the room, no one seems...

First Time Buyers

Find the best Negotiator for your first home! https://utahrealtyluxury.com/marty-gale https://bit.ly/2uoF4Jg

Find a Real Estate Professional

Find a Real Estate Professional

A professional is defined many ways in real estate. Find a professional that has been certified. Look for a CRS or a MCNE. UtahRealtyPlace.com has Marty Gale who is the only Realtor in the State of Utah with Both. https://bit.ly/2tQ0QF9 Unlock...

For Sale By Owner

  Just think if you hire a Certified Residential Specialist that is a Master Certified Negotiation Expert! Last I checked the only on in the State of Utah is Marty Gale with Utah Realty. If more buyers see a home, the greater the chances...

Business plan for commercial startup

To access the business plan template go to www.sba.gov. Please call if you have questions (801) 205-1600. Search for Commercial Real Estate in Utah  Your link for Commercial Real Estate in Utah Laurie Gale - Commercial Realtor

Free Home Magazine

Real Estate Matters Blog Utah Realty provides solid content for readers who want to learn more about the market and Utah real estate. [3d-flip-book mode="fullscreen" urlparam="fb3d-page" id="5615" title="false"] Join Our Newsletter Stay current on Utah Real...

Whats Up With Interest Rates?

https://bit.ly/2LkYR2R https://www.simplifyingthemarket.com/en/buyers/?a=405191-bf9ce7799899cf839e0bf0e261497d3e https://www.simplifyingthemarket.com/en/sellers/?a=405191-bf9ce7799899cf839e0bf0e261497d3e

https://bit.ly/2jElfHU Utah Realty uses Cory Clayson of Amerispec

The Difference an Hour Will Make This Fall

How to Pick A Real Estate Agent

How do I  Pick a Real Estate Agent? 25,371 People with an Active Real Estate License  ( Anyone that passes the State Test) 14560 People that are Realtors in Utah  (These people need to adhere to a stricter code of ethics and belong to Utah Real Estate...

Housing Price Increase Puts Utah in the Top Ten

Housing Price Increase Puts Utah in the Top Ten

Utah ranks in the Top 10 states when it comes to the highest percent change in house appreciation, according to the House Price Index by the Federal Housing Finance Agency. The report noted that Utah home prices have appreciated 46.03 percent in the past...

Waiting to Buy a Home In Utah

If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately...

How Much Has Your Value Increased

Do you currently own? Find out how much your home has gone up? Free market Value Report at: https://listings.utahrealtyplace.com/idx/homevaluation Just click and fill out the details of your home and we'll do the rest! https://bit.ly/2KucRXF

Utah top 5 states for Millennial home ownership

Way to Go Millennials! Utah is one of the top 5 states with the Highest Millennial Homeownership! Find or Sell a Millennial Home here>>>https://utahrealtyluxury.com/ We go the extra mile to speak, Text, Instagram your language. Yes I know,...

The Difference an Hour Will Make This Fall

Getting Ready to Sell My Home, Can I Take My Firearms?

Before moving out of Utah Beware of other States Gun Laws! Read the fine print. If you are moving out of the State of Utah and have Firearms check that State firearm law. Some states will arrest you and charge you for having a firearm in your vehicle....

midway townhome swiss alpenhof Heber Utah

midway townhome swiss alpenhof Heber Utah

New Price !    $498,000 Town Home in Scenic Midway Utah Located in the Swiss Alpenholf Planned Unit Development 4775 Square Feet with 4 bedrooms, 3 baths 3 family rooms. Back yard with mountain views. About Midway Midway is a city in Wasatch County, Utah, United...

The Difference an Hour Will Make This Fall

Existing Home Sales on the Rise

  Existing-home sales rose slightly during February after two consecutive months of regression. Total existing-home sales increased by 3 percent last month to a seasonally-adjusted average of 5.54 million, according to the National Association of...

Homekeepr

I am putting together a list of my favorite businesses. If you would like a copy of the list or if you would like to refer or recommend or if you want to be on the list yourself. It's Free.  Follow this Link

Spring 2018 Ultimate Sellers Guide

Spring 2018 Ultimate Sellers Guide

  [3d-flip-book mode="fullscreen" urlparam="fb3d-page" id="4873" title="false"] Free Expert Home Evaluation [advanced_iframe securitykey="65d612b00c4a9e142a2baed3667b9d4fc85250c7"...

Spring 2018 Ultimate Sellers Guide

Ultimate Sellers Guide

[3d-flip-book mode="fullscreen" urlparam="fb3d-page" id="4768" title="false"] Free Expert Home Evaluation [advanced_iframe securitykey="65d612b00c4a9e142a2baed3667b9d4fc85250c7" src="https://listings.utahrealtyplace.com/idx/homevaluation"...

MASTER BATHROOM REMODEL

https://realtytimes.com/consumeradvice/homeownersadvice/item/1014870-20180209-lessons-learned-from-a-master-bathroom-remodel?rtmpage=GaleTeam

The Difference an Hour Will Make This Fall

Why Work with a Realtor

8 Reasons Why You Should Work With a REALTOR® Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to...

Salt Lake County Home Prices

Salt Lake County Home Prices

[masterslider id="1"]   SANDY (Oct. 31, 2017) – The price of a single-family home increased to its highest point ever before, according to the Salt Lake Board of Realtors®. In the July-August-September quarter, the median price of a Salt Lake County...

The Difference an Hour Will Make This Fall

Realtors with HEART

Helping Families With Home Matters Real Estate With H.E.A.R.T.   H onest, Helpful E xtraordinary A chieve, Action,  Amazed R ealistic, Remarkable, Responsible, Ready T op Producing,  Trustworthy NEVER MISS A PRICE DROP OR NEW LISTING SAVE...

5 KITCHEN STYLES TO WATCH FOR

The L-shaped kitchen has nudged aside the U-shaped kitchen to become the most popular layout among U.S. homeowners changing their kitchen layout in a remodel, according to recent Houzz data. And farmhouse style has unseated traditional style for a spot in...

Find Cheap Homes for Sale in Utah

Find Cheap Homes for Sale in Utah

UTAH Short Sales, FSBO, Bank Owned, and Tax Sales Bargains Search bargain homes in Utah now to see the freshest listings of short sales, rent to own and tax sales. Buy from a seller using these creative sales strategies, and you can save you thousands on...

The Difference an Hour Will Make This Fall

Wasatch County Cheap Homes

Bargain homes and other real estate in Wasatch County, Utah Search Wasatch County, Utah Bargain homes. See information on particular Bargain home or get Wasatch County, Utah real estate trend as you search. Besides our Bargain homes, you can find other...

South Jordan City Leisure Guide

[flipbook pdf="https://utahrealtyluxury.com/wp-content/uploads/2018/01/South-Jordan-Leisure-Guide-Jan1_18.pdf"] Here are the events that  South Jordan City is planning on for Januarary thru April . South Jordan Leisure Guide Jan1_18

It pays to hire professional Realtors

Do it yourself companies Utah Division of Real Estate HOMIE, INC., real estate brokerage, Draper, Utah. In a stipulated order dated October 18, 2017, Homie, Inc. admitted to offering a variety of services to individuals seeking to sell or buy real estate located in...

Grant Money for Down Payment

Grant Money for Down Payment

Grant Money you don't have to pay back? WOW! We will have several 5K grants that may be applied to the down payment. Grant money will be available in mid-January, so start lining up your clients. There will be a limited number and will be awarded...

The Difference an Hour Will Make This Fall

Salt Lake County Top 10 Highest Price Cities

  Price of Salt Lake Homes Hits New High The price of a single-family home has increased to its highest point ever before, according to the Salt Lake Board of Realtors®. In the July-August-September quarter, the median price of a Salt Lake...

The Difference an Hour Will Make This Fall

Welcome Tanna Barker New Associate with Utah Realty

Press Release,   Utah Realty is incredibly pleased to announce that Tanna Barker, a new real estate agent has joined our team. We are excited to work with her and know you will be too. Tanna  has over 20 years of experience working with...

The Difference an Hour Will Make This Fall

MCNE

Utah has 23 Master Certified Negotiation Experts I am glad to be one of them.  

The Difference an Hour Will Make This Fall

For Sale Town Home 339 N 1400 W Midway Utah 84049

Located west of Homestead Drive. Turn west on to Swiss Alpine Rd. Left on 1320 West. Right on 365 North. Nestled in the foothills of midway with scenic views of Heber Valley and the Wasatch back. This spacious home has a large island kitchen, main floor master suite,...

Divorce and the House

Divorce and the House Often the house where the two of you have lived together will be the single largest asset of the marriage. In most cases, you and your spouse have owned the house jointly, and you owe money on the mortgage jointly. Often one of you will be moving...

Salt Lake City Utah Realtor Real Estate Agent

Salt Lake City Utah Realtor Real Estate Agent

When searching for a top real estate agent or Realtor in Salt Lake City, Utah is it best to find the most popular or the most qualified?  Believe it or not there is a difference. You can find the guy or gal the advertises on the radio constantly and try to get in...

Homes For Sale Sandy Utah

Find Homes for Sale in Sandy, Utah See 10 of the newest listings for sale in sandy Utah  Sandy Utah Homes for sale in Sandy Utah start in the low $100,000's with several homes in Sandy selling in the millions.  There are between 150 and 500 homes for sale in Sandy...

The Difference an Hour Will Make This Fall

Benefits of a FHA Mortgage In Utah

A low down payment. Lower credit requirements. More purchase power. The many benefits of an FHA mortgage may surprise you! [pdf-embedder url="https://utahrealtyluxury.com/wp-content/uploads/2017/04/The-Benefits-of-an-FHA-Loan.pdf" title="The Benefits of an FHA...

Utah Homes For Sale

Statewide residential listings for Utah. Utah Real Estate Listings. Displayed are Residential homes. Our website contains ALL listings from ALL Real Estate Agents in the state. Map of all the active homes in the MLS. These properties come and go fast! Check our site...

Homes for Sale in Utah

Utah Homes For Sale, Utah Real Estate with Utah Realty Find homes in Utah for Sale right here. The most and the newest listings from the MLS, Wasatch Front Regional Multiple Listing service. Free State wide list of homes for sale.

Union Workers Make Our Nation Great!

Union Workers Make Our Nation Great!

Up to $2000 Cash Back when you sell your home with us! We are here to earn your respect as the trusted adviser when it comes to your home. Utah Realty has created a unique program that rewards you with cash at closing for calling us instead of another agent when you...

Top Agent in West Jordan Utah

Searching for a  Top Realtor in West Jordan, Utah? When searching for a top agent or Realtor in West Jordan, Utah is it best to find the most popular or the most qualified?  Believe it or not there is a difference. You can find the guy or gal the advertises on the...

Search Utah MLS Salt Lake City Listings

Search Salt Lake MLS Listings. We specialize in assisting buyers and sellers all over the state of Utah. Searching for Real Estate in Utah? Our website contains every listing that is active.  ALL listings from ALL Real Estate Companies in Utah including Salt Lake...

The House The Pot Belly Pig, and the Crazy Aunt

The House The Pot Belly Pig, and the Crazy Aunt

BY MARTY AND LAURIE GALE Real Estate Broker/Owner with Utah Realty 5451933-PB00 Share: May 20, 2010 04:58 AM The characters consist of my past client, her grandmother (the retired librarian on oxygen), the grandma's caregiver (live-at-home bachelor son) and the aunt...

The Difference an Hour Will Make This Fall

What to Check During the Final Walk-through:

Those 24 hours before closing —  the home stretch to homeownership — is crucial. Preparation is key. The “final walk through” is your chance to make sure the buyer is getting exactly what they’re paying for. Bring a copy of your contract to ensure all included...

Pin It on Pinterest

Share This