🏡 EP51 – Hindsight Is 20/20 & What’s Private Mortgage Insurance?

Guest: Andy Zemon, Branch Manager at Novus Home Mortgage

🎧 The Reality of Real Estate Podcast | Presented by Find Homes Realty

When it comes to real estate, one small decision can have major consequences. In Episode 51 of The Reality of Real Estate Podcast, host Cynthia Hash is joined by Andy Zemon from Novus Home Mortgage to discuss how a single missed mortgage payment can derail your dream home—and what you need to know about Private Mortgage Insurance (PMI).

💡 The Real-Life Story: When Hindsight Is 20/20

Imagine selling your home in one state, packing up your life, and moving across the country to Virginia—excited to close on your next home at the end of the month.
That was the case for one couple featured in this episode. They assumed they didn’t need to make their final mortgage payment since the home was set to close before the next payment was due.

Unfortunately, their closing was delayed by a few weeks. And because they missed that final payment, their credit took a serious hit, disqualifying them from their next mortgage. The result? They lost the home they had already fallen in love with.

🚫 The Big Lesson: Never Skip a Mortgage Payment

Even if you’re selling your home and expect to close soon, always continue making your mortgage payments until the sale is officially complete.

As Cynthia and Andy explain, “Anything can happen—and often does.” A missed mortgage payment can drop your credit score significantly and make it nearly impossible to qualify for another home loan for up to 12 months.

The lender in this case had actually advised the couple to make that final payment, but a simple assumption—and a missed check—led to a devastating outcome.

💭 What Is Shadow Debt?

Andy also introduces an important concept: Shadow Debt.
This refers to the recurring monthly payments that may not show up as traditional loans but still impact your ability to qualify for a mortgage.

Think of things like:

• Amazon subscriptions
• Buy-now-pay-later programs
• Ongoing personal loans or memberships

Lenders now look more closely at these recurring obligations when determining whether a borrower qualifies for a mortgage. Shadow debt can silently chip away at your debt-to-income ratio and make approval more difficult than expected.

🏠 Consumer Guide: Do You Need Private Mortgage Insurance (PMI)?

If you’re buying a home and put less than 20% down, your lender will likely require Private Mortgage Insurance (PMI).
PMI protects the lender—not you—in case you default on your loan.

Here’s what Andy breaks down in the episode:

• When it’s required: Typically when your down payment is under 20%.
• How much it costs: Usually between 0.3% to 1.5% of your original loan amount per year.
• How to remove it: Once your loan-to-value ratio (LTV) reaches 80%, you can request to remove PMI (or it falls off automatically at 78%).

PMI may sound like an extra burden, but for many homebuyers, it’s what makes homeownership possible sooner—without waiting years to save a 20% down payment.

🗣️ Expert Advice from Andy Zemon

Guest Expert:
Andy Zemon
Branch Manager, Novus Home Mortgage
NMLS #208916 | Novus Home Mortgage NMLS #423065
📧 azemon@novushomemortgage.com
🌐 www.MortgageByAndy.com
📞 Office: 434-401-4119 | Mobile: 434-906-2570

💬 Final Takeaway

When it comes to real estate, communication is key.
Before making any financial moves—especially around a home sale or purchase—consult your lender and Realtor® first. A quick call could save your deal, your dream home, and your credit score.

🏡 About Find Homes Realty

At Find Homes Realty, we believe Integrity & Service is Our Motto. Whether you’re buying, selling, or investing in Charlottesville real estate, our experienced team is here to guide you through every step of the process.

📲 Text: 434-337-3216
🌐 Visit: FindHomesUSA.com
📍 Local Real Estate Agency in Charlottesville, VA