Mortgage Do's And Don'ts
Mortgages can be tricky, and it's easy to make mistakes that can end up costing you dearly. That's why we've put together this list of Mortgage Do's and Do not's to help you navigate the process with ease - and a little bit of humor.
DO: Shop around for the best mortgage rates
DON'T: Assume your bank will give you the best rate just because you have a checking account there. Remember, loyalty is a two-way street.
DO: Have a budget in mind
DON'T: Get in over your head. Just because you can technically afford a million-dollar mansion doesn't mean you should buy one. You don't want to be house-poor and unable to afford groceries.
DO: Get pre-approved before house-hunting
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DON'T: Assume you'll be approved for a mortgage just because you have good credit. Pre-approval is important because it gives you a better idea of how much house you can afford and shows sellers that you're serious.
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DO: Consider your future plans
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DON'T: Assume you'll live in your new house forever. Life happens, and you may need to sell sooner than you think. Make sure you're not getting into a mortgage that you can't realistically afford if you need to move in a few years.
DO: Get pre-approved before house-hunting
.
DON'T: Assume you'll be approved for a mortgage just because you have good credit. Pre-approval is important because it gives you a better idea of how much house you can afford and shows sellers that you're serious.
.
DO: Consider your future plans
.
DON'T: Assume you'll live in your new house forever. Life happens, and you may need to sell sooner than you think. Make sure you're not getting into a mortgage that you can't realistically afford if you need to move in a few years.
DO: Read the fine print
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DON'T: Sign on the dotted line without reading the terms and conditions. There may be hidden fees or clauses that could come back to haunt you later.
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DO: Be prepared for unexpected expenses
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DON'T: Assume everything will go smoothly. There may be unforeseen expenses, like a leaky roof or a broken furnace, that can quickly drain your savings. Be sure to budget for these types of surprises.
DO: Read the fine print
.
DON'T: Sign on the dotted line without reading the terms and conditions. There may be hidden fees or clauses that could come back to haunt you later.
.
DO: Be prepared for unexpected expenses
.
DON'T: Assume everything will go smoothly. There may be unforeseen expenses, like a leaky roof or a broken furnace, that can quickly drain your savings. Be sure to budget for these types of surprises.
DO: Have a good sense of humor
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DON'T: Take everything too seriously. Yes, buying a house and getting a mortgage can be stressful, but try to find the humor in the situation. After all, laughter is the best medicine for a stressful day.
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By following these Mortgage Do's and Do not's, you'll be well on your way to successfully navigating the mortgage process - with a smile on your face. Good luck, and happy house hunting!
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💸 How to Avoid PMI in 2026 — Smart Mortgage Hacks Every Buyer Should Know 🏡
💸 How to Avoid PMI in 2026 — Smart Mortgage Hacks Every Buyer Should Know 🏡
🚀 Skip PMI in 2026: Proven Strategies to Lower Payments & Boost Buying Power 💰
💸 How to Avoid PMI the Smart Way in 2026
Private Mortgage Insurance (PMI) is one of the most annoying home loan expenses buyers run into—especially first-time homebuyers. The good news? In 2026, buyers have more ways than ever to avoid PMI, reduce monthly payments, and increase buying power.
As a mortgage broker with access to dozens of loan programs, one of the most common questions I get is:
“Bill, how do I avoid PMI without coming up with a huge down payment?”
Here’s your full roadmap.
✅ What Is PMI (and Why You Want to Avoid It)?
PMI is insurance the lender charges when your down payment is under 20% on a conventional loan. It protects them, not you—yet you pay for it.
Typical cost:
0.5%–1.5% of your loan amount annually
For a $400,000 home, PMI can cost $225–$450 per month.
Avoiding it = instant savings.
🧠 Smart Ways to Avoid PMI in 2026
1️⃣ Use Lender-Paid Mortgage Insurance (LPMI)
Instead of paying PMI monthly, the lender builds the cost into the rate.
Good for buyers who…
·Want the lowest monthly payment
·Plan to sell or refinance in 5–7 years
·Prefer no PMI on the statement
This strategy often cuts payments by $150–$300/mo compared to standard PMI.
2️⃣ Choose a Piggyback Loan (80/10/10 Strategy)
You put 10% down.
The lender gives:
·80% first mortgage
·10% second mortgage → no PMI
·10% your down payment
Great for high-income buyers who want to avoid jumbo rates or PMI.
3️⃣ Use a 3%–5% Down Conventional Loan With “No PMI” Options
Some lenders and mortgage brokers (like Medallion Funds) offer reduced-cost PMI or waived PMI with slightly higher pricing credits.
Many first-time buyers qualify.
This strategy can save $8,000–$20,000 over 5–7 years.
4️⃣ Qualify for Special No-PMI Programs for Professionals
In 2026, more banks and lenders are expanding professional mortgage programs for:
·Doctors
·Dentists
·Attorneys
·CPAs
·Pharmacists
·High-earning medical professionals
These often include:
✔ 0%–5% down
✔ No PMI
✔ Higher loan limits
✔ Flexible underwriting
Perfect for buyers early in their career who want the lowest payment.
5️⃣ Consider a VA Loan (0% Down, No PMI Ever)
Eligible buyers:
·Veterans
·Active-duty
·Reserves
·National Guard
·Some surviving spouses
VA loans offer:
🔥 0% down
🔥 No PMI
🔥 Flexible qualification
🔥 Lower rates than conventional
One of the most powerful loans in America.
6️⃣ Use Gift Funds to Reach the 20% Equity Mark
Gift funds can come from:
·Family
·Employer programs
·Down payment assistance
·Church or nonprofit
If a gift gets you to 20% down, you instantly eliminate PMI.
7️⃣ Leverage Seller Credits to Buy Out PMI
In a buyers-market scenario (which parts of Houston are shifting into), you can negotiate:
✔ PMI Buydown
✔ Upfront MI Payment
✔ Lender Fee Credits
This can remove PMI without affecting your rate.
🏆 Which Option Saves the Most Money in 2026?
It depends on your goals:
·Lowest monthly payment: LPMI or professional loans
·Lowest long-term cost: 20% down or piggyback loan
·Fastest approval: VA or reduced PMI conventional
·Best for high-income buyers: 80/10/10 or professional loan
·Best for first-time buyers: 3% down with discounted PMI
As a mortgage broker, we run side-by-side comparisons so you can choose the most cost-effective structure.
🧾 Final Takeaway
PMI isn’t a penalty—it’s a speed bump.
And in 2026, smart loan structuring makes it easier than ever to avoid.
If you want to compare PMI vs. no PMI options, jumbo strategies, or doctor loans, Medallion Funds can run all the scenarios for you.
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© 2023-2024 Bill Rapp, Medallion Funds LLC, Director of Capital Advisory
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