I pay PMI on 2 rental properties. The cost is .5% of the total mortgage amount per year. Divide this by 12 for the monthly cost.
I'm in NJ...not sure if that matters.
As a loan offiicer, let me tell you there are so many different programs out there it is mind boggling. PMI is based on several different factors, including credit, so you really do need to talk to your lender and give him/her some more details to get the most accurate rate.
I have many clients who chose to go for a higher interest rate with no PMI because of the tax deductibility issue.
[addsig]
Thanks Joan. I was not aware that PMI expense varied based on credit. What are the other factors?
The PMI expense is not tax deductible. On the flip side...PMI will only be around until you pay off 20% of the priciple. Then you can contact your lender and have them remove it from your loan. I suppose that in the same timeframe, had you chosen the higher interest rate, you could refi and build in the appreciation as equity to lower the rate.
Probably best to ask your mortage lender or broker
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr
I pay PMI on 2 rental properties. The cost is .5% of the total mortgage amount per year. Divide this by 12 for the monthly cost.
I'm in NJ...not sure if that matters.
As a loan offiicer, let me tell you there are so many different programs out there it is mind boggling. PMI is based on several different factors, including credit, so you really do need to talk to your lender and give him/her some more details to get the most accurate rate.
I have many clients who chose to go for a higher interest rate with no PMI because of the tax deductibility issue.
[addsig]
Thanks Joan. I was not aware that PMI expense varied based on credit. What are the other factors?
The PMI expense is not tax deductible. On the flip side...PMI will only be around until you pay off 20% of the priciple. Then you can contact your lender and have them remove it from your loan. I suppose that in the same timeframe, had you chosen the higher interest rate, you could refi and build in the appreciation as equity to lower the rate.