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Could obtaining PMI help me qualify for a larger mortgage |
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Written by Tamara Schmitt
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Monday, 07 November 2005 |
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Yes. Let’s say that you are a family with $42,000 annual gross income and monthly revolving debts of $800 (car payment and credit cards) and have $10,000 for a down payment and closing costs on a mortgage at 7% interest.
Without PMI, the maximum price you can afford is $44,600. But with private mortgage insurance covering the lender’s risk, you can buy a house worth $62,300. PMI has afforded you 39% more house. |
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Last Updated ( Tuesday, 22 August 2006 )
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