How Return on Investment Changes Based on How You Pay PMI

If you're going to put less than 20% down when buying a property, the lender is likely to require that you pay private mortgage insurance (PMI) to protect them in case you default on the loan.

This usually applies to Nomads™, house hackers, and investors putting 15% down to acquire non-owner-occupant properties.

There are 3 ways to pay PMI:

1. Monthly
2. Get the lender to pay it by raising the interest rate
3. One-time, upfront, lump sum

But of those three options, which gives you the best return in dollars?

Which gives you the best return on investment?

Find out in this class.

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