Save Money by Eliminating Private Mortgage Insurance

A traditional mortgage generally requires the buyer to place a down payment of 20% of the purchase price, but with recent changes lenders have made it possible to purchase a home with as little as zero down. This might seem great for a prospective borrower, but there's a catch. You'll need to pay private mortgage insurance, or PMI. Unless you have 20% to put down the lender is going to want some sort of insurance to protect them in the event you default on your loan. Luckily, you have some flexibility and can reach certain milestones and then opt out of PMI. Doing so could save you thousands of dollars on over the life of your loan. Learn more about PMI and how you can avoid paying it.