Sign up for our FREE Monthly Email Newsletter
In addition to keeping in the financial know, you may be interested in checking your credit score and report.
¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.
²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.
³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.
4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.
Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.
If you’re getting a mortgage, you will first need to understand the term private mortgage insurance, also known as PMI. PMI, which nearly became extinct during the real estate boom years, is an insurance product created solely for the benefit of a lender, although the borrower usually pays it. It gives limited protection to a homeowner’s lender if a loan goes into default and foreclosure.
Traditionally, when getting a mortgage, if you have a 20 percent down payment, you won’t need to worry about PMI. But if you have less than 20 percent to put down toward the purchase of your home, or if you are trying to refinance your existing home and its value has gone down, you might have to consider paying for PMI.
You will generally pay for PMI with your monthly loan payment to your lender. However, there are loan programs that might allow you to make a one-time payment or a yearly payment for your mortgage insurance (MI).
Avoid Mortgage Insurance on a Loan
Here are some ways that you may be able to avoid paying MI on a loan.
Remember that if you chose a higher interest rate for your loan as a way to cover your MI and you then keep the loan for its entire term, you may end up paying much more over the long term. On the other hand, if you pay the MI up front and refinance or sell shortly thereafter, you may lose some of that payment.
If you can avoid paying for mortgage insurance, and you don’t end up with a higher interest rate on your loan, remember to make sure your other options related to your loan work for you and don’t place an undue burden on you down the road.
The Beginning of the End of the Foreclosure Era
Property Taxes: 6 Ways To Get Your Property Taxes Reduced
Mortgage Rates, Programs, and Fees: FAQs From Ilyce Glink
Help Is on the Horizon for Unemployed Homeowners
Samuel Tamkin is a Chicago-based real estate attorney with more than 20 years of experience working with residential and commercial clients. Sam received his law degree from the University of Illinois College of Law in Champaign-Urbana and currently practices as a real estate lawyer in Chicago.
Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.