If you’re looking to eliminate your Private Mortgage Insurance (PMI), Quicken Loans is here to help. Check out our guide on how to do just that.
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What is PMI?
Private Mortgage Insurance (PMI) is insurance that protects the lender in case you default on your home loan. It’s typically required if you have a conventional loan and make a down payment of less than 20%. It may be possible to eliminate PMI with Quicken Loans even if you’re not 20% equity in your home.
What are the benefits of PMI?
There are a few benefits of having PMI on your loan:
-It protects the lender: If you default on your loan, the lender will be reimbursed by the insurance company.
-It offers more flexibility: If you can’t afford a 20% down payment, PMI allows you to buy a home with a smaller down payment. This can help you get into a home sooner.
-It’s tax deductible: The amount you pay for PMI is tax deductible if you itemize your deductions.
How to Eliminate PMI with Quicken Loans
If you’re a homeowner, you may be paying for private mortgage insurance, or PMI. Here’s how to eliminate PMI with Quicken Loans.
How to avoid paying PMI with Quicken Loans
Quicken Loans is a direct Mortgage lender that offers a variety of home loan options, including the ability to avoid paying private mortgage insurance (PMI).
If you’re not familiar with PMI, it’s insurance that protects the lender if you were to default on your loan. It’s required if you make a down payment of less than 20% on your home.
The downside of PMI is that it can add several hundred dollars to your monthly mortgage payment. But there are a few ways you can avoid paying it, and Quicken Loans offers two of them.
How to get rid of PMI with Quicken Loans
Quicken Loans, the nation’s largest online mortgage lender, allows eligible borrowers to eliminate Private Mortgage Insurance (PMI) without increasing their monthly mortgage payment or refinancing their home loan.
If you’re a Quicken Loans client with a good payment history, you may be eligible to have your PMI automatically canceled when your home value reaches 20% equity. If you’re not quite there yet, you have the option to request that your PMI be removed once you reach 22% equity in your home.
If you have a conventional loan and are paying PMI, contact your Quicken Loans servicing team at (800) 253-0333 to see if you qualify for PMI removal.
The Bottom Line
If you’re considering taking out a mortgage with Quicken Loans, you may be wondering if you can avoid paying for private mortgage insurance (PMI).
Here’s the bottom line:
Quicken Loans does not require PMI for most home buyers. However, if your down payment is less than 20%, you will likely be required to pay PMI. You can avoid PMI by making a down payment of 20% or more. If you do have to pay PMI, Quicken Loans offers a program called Rate Shield that allows you to lock in your interest rate for up to four years, even if rates go up.
For more information on Quicken Loans and avoiding PMI, speak with a Home Loan Expert by calling (800) 251-9080.