First Time Home Buyer Article Library

Private Mortgage Insurance (PMI) is an important part of the home-buying process. This is especially important for individuals who are unable to make a typical 20% down payment on their home.

PMI is designed to protect the lender in the event of a default on the loan while allowing new buyers to enter the housing market sooner than they otherwise could, making it a valuable stepping stone to homeownership for many.

While the cost of PMI varies depending on the size of the down payment and the loan, it does represent an additional cost to your monthly mortgage payment, so, it’s an important concept to understand.

Once you have created a certain amount of equity in your home through payments or appreciation, you can typically request the removal of PMI from your mortgage payments.

For new home buyers navigating the complexities of PMI, remember, you’re not alone. NIHFCU’s home loan specialists are here to guide you through each step of the mortgage process, including understanding PMI.