refinancing

Avoid PMI When Refinancing: Ultimate Guide to Saving Money

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Avoid PMI When Refinancing: Ultimate Guide to Saving Money

Refinancing a mortgage can be a great way to lower your interest rate, shorten your loan term, or cash out some of your equity. However, if you don’t have 20% equity in your home, you may have to pay private mortgage insurance (PMI). PMI is an insurance premium that protects the lender in case you default on your loan.

There are a few ways to avoid paying PMI when refinancing. One option is to get a conventional loan with a loan-to-value (LTV) ratio of 80% or less. Another option is to get a government-backed loan, such as an FHA loan or a VA loan. These loans have lower LTV requirements, which means you can have less equity in your home and still avoid PMI.

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5 Insider Tips on How to Avoid Closing Costs When Refinancing

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5 Insider Tips on How to Avoid Closing Costs When Refinancing

Refinancing a mortgage can be a great way to save money on your monthly payments or get cash out of your home equity. However, closing costs can add up quickly and eat into your savings. There are several ways to avoid or reduce closing costs when refinancing, including:

– Shop around for lenders: Lenders vary in the fees they charge, so it’s important to compare quotes from multiple lenders before making a decision. – Negotiate with your lender: Some lenders are willing to negotiate closing costs, so don’t be afraid to ask for a lower rate. – Get a lender credit: Some lenders offer lender credits to help cover closing costs. This is essentially a discount on the loan amount, which can save you money upfront. – Roll closing costs into your loan: This will increase your loan amount, but it can be a good option if you don’t have the cash to cover closing costs upfront.Avoiding closing costs can save you thousands of dollars, so it’s worth taking the time to explore your options.

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