Helping clients avoid private mortgage insurance is one of the most important things that we do. You want to try to avoid mortgage insurance at all costs for a couple of reasons. Number one, mortgage insurance doesn’t fall off of most loans until you’re in the 10th or 11th year of that amortization schedule, or the repayment schedule. Most of our clients are in their homes between seven and ten years, so even though in theory mortgage insurance would fall off down the road, most clients that end up with mortgage insurance loans end up paying it for the entire period that they’re in the loan. Where that important money that could be allocated towards principle reduction is going towards mortgage insurance.
The other reason why you really want to avoid private mortgage insurance is that it’s typically not tax deductible. Now, I’m not a CPA, you need to check with yours, but there isn’t as much tax efficiency in many instances when you pay mortgage insurance. There’s a lot of information on our websites, which we’ve put a link down below. We’d love you to check those out. If there’s anything else we can do, if you have any questions, don’t hesitate to reach out to us.