PMI (Private Mortgage Insurance) is required when a mortgage is over 80% of the value of the home.  This is obtained by the banks on behalf of a borrower and paid for by the borrower whether purchasing or refinancing a home.

 

The cost can be $50-60 dollars a month per $100,000 dollars mortgaged.  Although this can add up, it cannot be avoided. Recently it became a tax deductible home expense, so that is good.

 

Unfortunately, the cost of PMI has just gone up.  Not another thing!!

 

The monthly fee for PMI has gone up between 30-150 dollars per $100,000 as of September 8^th.  This will be added onto your monthly payment and continued until your loan is less than 80% of the value of your home. 

 

Ouch! Could take years to remove at the rate home values are going.  Good news though, it is tax deductible.

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