How to lower your PMI

If you think you may be paying too much in Private Mortgage Insurance (PMI), then the chances are you are.  Most Atlanta mortgage insurance companies will consider a number of different factors before assessing your PMI premiums, but if you have a bad credit rating or are relying on a mortgage loan of more than 90%, then it’s almost certain you’re paying premium PMI rates.  So, if you want to make sure you minimize these costs on your home mortgage loan, you have three options.  You can put down 20% or you can do a piggyback loan.  With a piggyback, instead of paying PMI, the lender who carries your second mortgage assumes the risk that would traditionally be taken on my the PMI company.  Generally, you will see a savings if you choose a second mortgage over paying PMI, however, in the current rate environment, those savings are far less than they have been over the past few years.  Alternatively, you could try to buy a home that is likely to increase in appreciation and then get your home appraised after you have been there two years.  If the appreciation has been enough to push your loan to value (LTV) ratio below the magical 80% theshold, then you can get rid of that PMI payment.