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Showing posts with the label avoidpmi

Loan using 401k as collateral

Buying a home can be difficult especially if you do not have a down payment. In this video I will explain the different options I considered when I bought my first home and how I took a 401K loan out to put a 20% down payment. By doing this I avoided paying for PMI (private mortgage insurance). A 401k loan for home purchase is an option for putting a down payment on a house. When you buy a home it is also important to how much interest you will be paying on your mortgage. If you do not put 20% down on a home purchase will need to pay PMI. Your PMI payment will not reduce your mortgage and if you have to pay PMI this is money that will not build equity in your home. It is also very important to understand that by putting 20 percent down on a home it will ultimately save you thousands of dollars in interest. I will go over the numbers and calculations that will shock you but ultimately help you decide if this is a strategy for you. Please follow me on all my other social media