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First-Time Home Buyers: PMI Insurance to Increase on April 1, 2013

On April 1, 2013, monthly PMI insurance will increase from 1.25% to 1.35%.

“PMI” or Private Mortgage Insurance, refers to a type of insurance that most lenders require of all borrowers who put less than 20% down on their home.  PMI’s purpose is to protect the lender against losses should the borrower default.

With the protection of PMI, lenders are able to give homeowners loans with down payments as low as 5% or 10%. First-time buyers often opt for PMI insurance because cash for downpayments and closing costs may be tight.

Those who are currently searching for new homes and are unable to put 20% down on the loan should consider submitting a contract in the next few weeks.  On April 1, 2013, monthly PMI insurance will increase from 1.25% to 1.35%.  In order to avoid these cost increases, the borrower must have an accepted contract with their lender – with a valid case number – by March 31, 2013.  The monthly PMI increase will stay in effect for the life of the loan.

Fischer & Frichtel offers many opportunities for first time homeowners to take advantage of before the increase begins – all starting in the $100’s.

Charlestowne Lifestyle Homes in St. Charles, MO
Featuring single-family homes priced from just the $119′s, the Lifestyle designs are specifically geared to today’s buyers who want a traditional detached home but are on a strict budget.
Learn more here.

Charlestowne Cottages in St. Charles, MO
Featuring a 2-bedroom ranch, 3-bedroom story-&-a-half with main-floor master suite, and two 2-story designs, both with three bedrooms.
Learn more here. 

Charlestowne Manors in St. Charles, MO
The Manor Collection features five of our most popular models – three ranches and two two-stories.  Basic floorplans range in size from 1302 to 2468 square feet and provide up to four bedrooms, with prices starting from $159,900.
Learn more here.

Cimarron Forest in Wentzville, MO
Located off of Hwy Z, just south of Interstate 70, Cimarron Forest is a quiet neighborhood surrounded with woods, offering quick access to all of the conveniences along Wentzville Parkway, just a few minutes away.
Learn more here.

Montecito in St. Charles, MO
A place for people of all generations: at one incredible, close-in St. Charles location. Conveniently located near major highways, shopping, and Gold’s Gym recreational facility.
Learn more here.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

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