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8 Tips for Getting the Most Out of Attending Durango Open Houses

Durango Open House Sign

If you are looking at purchasing a home, whether or not it is your first home or an investment property, a key process of the home buying process is attending open houses in the area you are looking to buy in. Open houses can provide you with an inside scoop on what kind of homes you may find in that area as well as what you can expect to obtain for your money. Keeping an open eye and asking the right questions can glean for you all of the information you need to decide if writing an offer is in your best interests. I’d like to share a few tips with you to guide you through the open house process.

Inquire About the Home’s Price History

Home Value Fluctuation

Homes on market for long periods of time often have price reductions, the seller’s agent will be able to explain why. Understanding the seller’s motivations for setting their price can help you negotiate the best possible price for a home you are interested in.

Determine the Level of Privacy the Home Offers

Open House Concerns

Take a look out the windows of the home, does the bedroom window look out into a busy street, does a bathroom window look directly into another home’s window? Do you prefer to have a fenced in yard, are the fences in good condition or are they missing parts? The level of privacy a home offers isn’t universal throughout and is certainly worth taking a closer look at, make sure the home you are interested in has the right amount of privacy for you.

Don’t go Through the Owner’s Belongings

Cat in Drawer

I wish I could say this goes without saying, but many an inquisitive person has riffled through other people’s belongings at open houses, don’t. While the overwhelming majority of people in the world wouldn’t dream of taking home a souvenir from someone’s home, going through other’s personal belongings without permission is considered incredibly disrespectful. Anything that lies behind a closed door should only be viewed with the consent of the real estate agent.

Your Nose Knows

Durango Open Houses Bad Smell

As you look around the home, keep an open nose for any strange or foul smells that may be present. Take a whiff around the attic and basement (if the home has one), the presence of an unpleasant odor could be from a number of sources, one of the largest concerns would be the presence of mold. Another potential red flag is the presence of scented candles or incense, they may be there to create a pleasant atmosphere or they may be there to mask a pervasive odor. Should a smell strike you as strange or unpleasant, ask the real estate agent about it.

Ask About the Home’s Time on Market

House Clock, Time on Market Durango Open Houses

There are homes that stay on the market for quite a while before they are sold, there are homes that show up on the market and sell within weeks. Reasons for a home’s longevity on a market are varied, from an offer falling through due to financing to a home being priced outside of the area it is in. Your real estate agent can look up the amount of time a home has been on the market for you, but the seller’s agent (who is hopefully the one hosting the open house) can give you context as to why it has been on the market for as long as it has. Garnering as much information about a home is an important step before you write an offer.

Look at the Home’s Condition

Poor Condition Home

Open houses are presented to demonstrate all the positive aspects of a home, fresh paint and new appliances stand out and impress. Take in all the things that make a home great but you need to be able to look past them as well. Look for anything that can signal structural issues in the home. Look to the floors to see if they are slanted or sagging, cracks in the walls, paint patches on the wall, are the doors easy to open?  Keeping an eye out for any potential issue can save you time and hassle in your hunt for a home.

Feel the “Flow” of the Home

Furnished vs Unfurnished Durango Open Houses

Are you able to move from room to room easily, do the rooms feel spacious and open? A home may feel like it flows well to you, but how much of the flow is due to the home’s furnishings? A vast majority of home that you come across don’t include interior furnishings.Try to imagine the home with your belongings in their place, does it flow well then?

How is the Neighborhood?

Good Neighborhood Durango

Peek your head outside of the home, are the neighboring homes in good condition and well kept? When you purchase a home, you’re not just buying the home but also buying into the local neighborhood. While you are at the home, check to see if there is a great deal of traffic passing by that can wake you in the morning, are there parks or public open spaces near for you or your family to utilize? Make sure the neighborhood is a fit for you as well as the home.

Open houses are a great tool to getting a feel for a home and neighborhood, as with all things the usefulness of it comes from how it is utilized. Hopefully these tips can help you get the most out of your time at any open house you go through.

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Are you looking to buy a home? Let’s have a chat even if right now isn’t the best time. I have decades of experience in the real estate market and can help you make your plans reality.

You can see what local homes sold for here!
Give me a call at 970.335.8225 or send me an email at

Are Your Neighbors Affecting Your Home Sale?

Hey Neighbor

Hey Neighbor

Has your home been on the market for ages?  Your home has had a few showings but no offers have come in? what is causing the lack of interest in your home?

Neighbors Affecting Sale

Perhaps the reason your home isn’t budging may be the same reason that you are trying to move, your neighbor’s property. It could be the unkempt lawn, the dilapidated exterior buildings, or maybe the neighbor’s home itself is lacking repair. Frustrating as a bad neighbor can be, there still may be hope for your home’s sale. Here are a few tips for dealing with less than ideal neighbors.

Reasonable Chatter

Charging down to your neighbor’s home and demanding that they address the issues with their property will be tempting, but you want to be sure of the issues in question before you make your claim. Speak with your Realtor and ask them what you think the problem is, and if they agree with your assessment that your neighbors are contributing to a lack of interest in your home. Be sure to ask around your neighborhood and ask other neighbors in the area what they think to gain perspective before making the trip to your problematic neighbor.

“Speak softly…”

Neighbor Communication

Use tact when approaching your neighbors, telling them that they need to fix things right now will most likely result in strained relationships between you and them with the likelihood of your neighbor undertaking the desired remedies diminished greatly. Present yourself calmly and politely, offer to help them with the fixes and explain that the fixes will not only benefit yourself, but will also increase their home’s value as well. Should you feel that a direct conversation isn’t practical or ideal, try a more subtle push by organizing a neighborhood cleanup and hiring a junk removal service for the community. The problematic neighbors may just clean up their property without needing to be asked

“,,,and carry a big stick”

Big Stick

You’ve offered to help and asked nicely, you’ve done subtle suggestions and given them plenty of opportunities to remedy the issues, but they refuse. There are other steps you can take to force their hand into maintaining their property. Many municipalities  have bylaws concerning the upkeep of property, it may be time to get local officials involved.  Obtaining the backing of your other neighbors can make this process easier to accomplish. Remember though, you should always approach the neighbors first and ask nicely before reporting them to the authorities.

Messy neighbors can be a hurdle to getting your home sold, but can be overcome. The vast majority of cases a bit of diplomacy and the other to help will bring about the solution.


Have you tried selling your home and given up? Was it a lack of interest in your home, lackluster service from your agent, the process being too confusing or tiring, or all three? Let me help you with your real estate goals, My team has decades of combined experience in real estate and I’m considered an expert in my field. Give me a call or send me an email, I’d love to get in touch and answer any questions you may have about Durango real estate!  

Come and see what your home is worth instantly, zero hassle and free!

-Come and see homes for sale in your area here-

Give me a call at 970.335.8225 or send me an email at

Astonishing Home Overlooking Durango

195 Valle Vista

Nestled on almost four acres of land in the secluded, gated community of Far View Estates, this “Tuscan villa-like” home is located within minutes by car, an easy bike ride, or a long walk from downtown Durango and provides striking views of Perins Peak. Within easy walking distance of Hillcrest Golf Course and the Fort Lewis Concert Hall, you can also get a magnificent view of this special home and its stunning roof line from the “Lions Den” on Rim Drive.

Meander through an intimately designed entryway and private courtyard, leading you into the foyer and great room, the attention to detail is everywhere you look and in everything you see. Brought to life by the Durango dream team of architect, Jon Pomeroy and builder,Tom Gorton, this home features Italian porcelain tiled floors and hand painted accent pieces, which keep the home cool in the summer and radiate heat in the winter. Sweep your gaze across the rooms to the soaring tower, architectural arches, faux painting, and Venetian plaster as accents in addition to the alderwood doors, wrought iron railings, rounding out the the villa style.

The great room is open with a tall, beamed ceiling accentuated by a kiva fireplace with copper accents and tiles, custom glass and hammered metal glass insert. A built in entertainment center, complete with display shelves and built in lighting, set the ambiance for a dinner party or intimate evening at home. Floor to ceiling windows and doors lead you to a covered terrace with sunscreens where you can watch the sunset or the ever-changing Colorado sky over Durango.
195 Valle Vista

View from the main covered terrace

The chef’s kitchen was meticulously designed with functionality and efficiency in mind,and is equipped with high-end appliances, big center island, beautifully veined, slab granite counter tops. Offering unobstructed views to Perins peak and the golf course as one preps, the elegantly distressed finished Cherrywood Woodmode cabinets with deep and oversize drawers to store cookware, dishes and utensils, ensures that everything is within easy reach. The openness and center island invite guests to congregate, it’s the perfect place for entertaining. Adjacent to the kitchen lies a sunny, warm alcove with gas fireplace and built in window seats to enjoy a meal, read a book, or ponder over a cup of coffee.
195 Valle Vista Nook


You’ll find the expansive master bedroom has it’s own door to the west terrace, and is adjacent to a private patio reminiscent of a “grotto” for your morning sun. A five piece master ensuite delights, with dual vanity, Italian travertine tiled countertop, a jetted tub flanked by large windows giving you the feel of bathing outdoors, european glass shower and an oversized walk-in closet. Across from the master suite is a first floor office with built-in solid wood bookcase, built-in filing cabinets, as well as large windows peering out to the water feature. As you wander upstairs to the gallery, head right towards two spacious bedrooms complete with their own large walk-in closets, jack-and-jill bathroom with separate commode rooms. The eastern facing bedroom has built in window seats to take in the mornin g rising sun, while the western facing one has a balcony to enjoy the ever-changing sunset and dramatic lighting shows.

195 Valle Vista Balcony

Bedroom balcony view

Venture to the left of the gallery to a bright, versatile room you can use for any need – office, playroom, exercise room or additional guest room, the possibilities abound. Finishing off the upper level is a what we call “the cave” also waiting to be transformed into whatever your desire calls for – possibly a theatre room! The permeable paver driveway and garden paths lead to an oversized, attached two car garage perfect for outdoor enthusiasts. With over 800 sq ft of covered terraces offering indoor/outdoor living throughout the home along with additional flagstone patios and walkways, come and see this incredible home for yourself!

Durango Open Burning Guidelines

Durango Open Burning, be safe

With spring approaching it’s almost Durango’s open burning season, due to the risks of fires spreading La Plata County ( Which the City of Durango belongs to) requires permits to open burn.

Here is the press release from Durango Fire Protection District’s Fire Prevention Bureau:


Open Burning Guidelines


Open burn permits are issued Monday, Wednesday, & Friday from Noon – 4:30 PM at the Durango Fire Protection District Prevention Bureau, 104 Sheppard Dr. in Durango


January 1,  2012 the State of Colorado required all Counties with greater than 40% forested land to implement an Open Burn Permit Program. La Plata County is 70% forested land. The La Plata County permit program was entitled Open Fire Control so as to distinguish it from burn bans inplemented by the La Plata County Board of County Commissioners during times of significant fire danger.


The process for those individuals residing in the Durango Fire Protection District (DFPD) and in La Plata County is:


  • The application is on the DFPD website which can be found here
  • You may complete the application online with the exception of your initials and signature.
  • Print the application and bring it to 104 Sheppard Drive, Durango, CO 81301
  • To ensure that there is someone available to process your application, please bring your application in on Monday, Wednesday, or Friday between 12:00 PM and 4:30 PM
  • The day you burn, please contact Central Dispatch at (970) 385-2900 to advise them you are burning. They will ask for your permit number.
  • Burn piles are restricted in size to 4 feet by 4 feet and the material to be burned shall be limited to natural vegetation less than 6 inches in diameter. Burns greater in size may require a State of Colorado smoke permit.


The State of Colorado does not allow the burning of coated or treated wood products, tree stumps, cut lumber, construction debris, plastics, tires, rubber, and other chemical products.


Agricultural burns, where the land is listed as agricultural by the Tax Assesor, are not required to obtain a burn permit.
No open burning is permitted within the City Limits of Durango other than recreational fires (3’ x 3’ x 2’) for cooking and warming.



Durango Open Burning Flyer

Official flyer released by DFPD


Risks of wild fires are a real danger in Durango and La Plata County, following these guidelines when you do open burns ensures not only your safety but the safety of everyone in the county.

Durango Real Estate Market Status 2016

2015 was a great year for the national real estate market, and Durango Real Estate was no different. Strong growth in home sales as well as home values in 2015 has set 2016 to be a record-setting year. With the volume of home sales and the values of homes rising from the past year, there hasn’t ever been a better market for real estate in Durango! Here I am going over Durango’s real estate market and how it has grown and where it is likely to be heading.


Durango’s 2015 Real Estate Market Analysis

Durango Real Estate Market looks bright


First we’ll need to see how the real estate market in Durango has grown in 2015. By all accounts 2015 was an incredible year for real estate markets on the national level. Nationally,  home sales have increased year on end from 2014 at 4.9 million homes sold to 5.3 million in 2015, a 7.5% increase.


National Real Estate Volume

National Real Estate Volume


On a local level in 2014 Durango had 800 total homes sold and 867 sold in 2015, a 7.7% increase and in line with national levels. Durango’s real estate market is still going strong and with home prices increasing in Durango (not counting the mountain resort) by 4.25% from 2014 levels.


Durango Real Estate Statistics, on the up!

Durango Real Estate Statistics

Durango Real Estate Statistics, Mountain Resort Homes... ouch

Durango Real Estate Statistics, Mountain Resort Homes


All this points to a strong and robust real estate market. Durango is in a seller’s market with inventory becoming more scarce and with buyers serious in the homes they are looking at. New home construction nationally is well below the historical average of 1.08 million homes, sitting at 715 thousand for 2015.


National New Home Construction, down but not out

National New Home Construction


This means the housing market is still relatively tight on inventory, especially for first time home buyers, as starter home construction was the key driver of new home construction. In Durango, the entry level housing market is represented in large part by the construction efforts at Three Springs, and looks set to continue for the next couple of decades based on the number of units. 


The Durango real estate market is as strong as ever, now is a great time to sell your home. Let’s have a chat even if right now isn’t the best time. I have decades of experience in the real estate market and can help you with your plans.

Find out what your home is worth here
Give me a call at 970.335.8225 or send me an email at




Real Estate Mistakes Part 2

Oops sign

Real estate mistakes are common and avoidable for the most part. We all have made them at one point or another but the key is to recognize when we have. I’ve found a great article online here which outlines some of the biggest mistakes Buyers tend to make when looking at real estate. I’d like to share with you a few more that stood out for me.

Not Researching the Neighborhood

Real Estate Mistakes - Neighborhood

You’ve found your dream home, its floor plan is perfect, the style is excellent, and is priced well below what you’d expect a home like that to sell for. The old adage “if it’s too good to be true” rings especially true in real estate. Often there are some fabulous homes on the market that seem like a no brainer, but the catch lies with the neighborhood they reside in. From loud and messy neighbors to schools that don’t perform, neighborhoods are very important to the home buying process. I would recommend that you do a quick drive around the home you are looking at, see if there is anything that stands out as wrong or off. See if there are any community meetings happening that you may be able to attend, and look up the local schools and school district to see how they perform on a national level.  Also, knock on doors and meet your potential neighbors, they may have different perspectives on the area you wouldn’t necessarily think of.

Trying to Make the Hard Sell

Real Estate Mistakes - Hard Sell

When you have an open house on your home you are trying to sell, it is tempting to talk up everything that makes the home special to you, don’t. The reasons you love your home may not be what a potential buyer is looking for in a home. If you are selling your home, you may consider not being around at the open house. Being absent at the open house, whether physically or verbally, allows a buyer to give unbiased objective feedback to the agent, which is only going to help you in the end.

Failing to Market Your Home in Different Ways

Marketing Your Home - Real Estate Mistakes

If you are thinking about putting your home up for sale, don’t just stick a “for sale” sign in your yard and hope for the best. There are a plethora of marketing tools available and it’s in your best interest to get your home as much exposure as possible.  Talk to your real estate agent about the marketing they plan to do for your home. It’s something that should be set up form the initial signing of a contract with your agent. Some homes have virtual tours and photographs online, should you choose this route, don’t forget to include floor plans. The more information you can put out there about your home the better, buyers love information about homes. (The Gallant Network does full 3d scans of homes that combine a virtual tour, photography and floor plans, check it out!)

Gallant Homes & Property

Real estate mistakes can cost you big time in a truly short time. Having an experienced real estate agent at your side who can guide you through the home buying process is indispensable. I’m always happy to help with any questions you may have in real estate, my phone # is (970) 335-8225 or you can email me at

You can browse homes for sale in the Durango area here, and you can see what your home is valued at here.

Posted 2/12/2016:

Real Estate Mistakes

Real Estate Mistakes

Real estate mistakes are common and avoidable for the most part. We all have made them at one point or another but the key is to recognize when we have. I’ve found a great article online here which outlines some of the biggest mistakes Buyers tend to make when looking at real estate. I’d like to share with you a few that stood out for me.

Buying a Home for Its Decor

Real Estate Mistakes, Decorations

Image courtesy of Elle Decor

You’ve walked into a fantastic looking home, the drapes match the walls perfectly and the furniture goes together really well! Just a slight problem, the home doesn’t come with the furnishings. It’s easy to get caught up in how well the owners have set up their home, but it is important that you look past this. How is the floor plan laid out? Is there enough storage for you and your property? How are the views? Is the home in good condition or are there repairs needed? (light fixtures working, trim in good shape).

Treating Real Estate Like the Stock Market

Real Estate Mistakes, Stock Market Mentality

We’ve all heard the news about home values on the rise, and real estate is a great investment for your future. But real estate is very much different from the stock market. It is a long term investment, 3+ years at a minimum to break even in most cases. While home “flipping” (buying a run down home and fixing it up) is an exception, it requires a concerted effort on the buyer’s part and isn’t without it’s own risks as well. Don’t make the all too common real estate mistake of treating your property like stock.

Not Thinking About Resale

Real Estate Mistakes, Unique homes

This real estate mistake is along the same vein as treating real estate like stock, if you are looking for homes to increase your wealth you’re going to want to be able to resell your home should the need arise. An incredibly unique home that you just fall in love with may be perfect for you, but does the layout and design work for the majority of sellers? Homes that sell well and steadily  increase in value have simple floor plans and broad appeal. Buying homes in the real estate market is a bit like chess, you’ll want to be looking two or three steps ahead in the game.

Real estate mistakes can cost you big time in a truly short time. Having an experienced real estate agent at your side who can guide you through the home buying process is indispensable. I’m always happy to help with any questions you may have in real estate, my phone # is (970) 335-8225 or you can email me at

You can browse homes for sale in the Durango area here, and you can see what your home is valued at here.

Durango Real Estate Tips for Beginners

Real Estate Tips Durango Real Estate

Are you just getting started in the Durango real estate market, looking to put your home up for sale? The local real estate market can be a bit overwhelming with all sorts of advice thrown around about best practices for getting your home sold. I would like to share some quick and easy tips to maximize your home’s showing potential both online and off!

Real Estate Tips, Home Value Durango Real Estate

One of the absolutely first things a potential buyer looks at is cost, what is the home listed for? Now this may be a hard pill to swallow but when you are bringing your home to market the price you “want” or “need” often isn’t what the market will give you. Pricing your home right the first time is crucial to getting your home sold for the highest amount. Homes that are priced above market value stay on the market for much longer and seldom if ever sell for the original asking price. The longer a home is on the market the less interest it generates among buyers.

Real Estate Tips, Home Scrutiny Durango Real Estate

Once you have settled on your pricing, the second most important art of selling your home is the presentation of the home. Sounds like a no brainer, but the amount of times I have come across photos of homes online that are disastrous at best, is all too often. You will be presenting your home both in person and online, with a great presentation you’ll garner more interest and show that your home is worth what you are asking. Photos are key for your online presence, almost 90% of buyers use the internet to look for a home. The more photos the better, show a potential buyer what makes your home great!

Real Estate Tips. Home Cleaning Durango Real Estate

First things first, you’ll want to deep clean your home. not just the normal clean but getting the walls and every nook and cranny scrubbed and wiped. Buyers that walk your property walk it with an incredibly discerning eye looking for any possible damage or defect that you may have gotten used to. When you have your home photographed you’ll want everything staged and ready, all your lights on, windows coverings open, and all lamps turned on. You want to present your home as a warm and inviting place, not a cozy cave. In bathrooms and kitchen, clear of much as you can off of the counters, a cluttered counter gives the impression that there isn’t enough room.   Also, you may love “Fido” with all your heart, but a prospective buyer may be scared away assuming there is damage in the home from your pet (stains, scratch marks, animal dander). For the outside, first impressions are key.  Clean up your yard, mow the grass, pick up toys and hoses, move your car(s) out of the driveway.  Remember, you are selling the home, not the ancillaries.  

Gallant Homes & Property For Investment Durango Real Estate Tips

These are just a few tips for anyone looking to bring their home to market. In the future I’ll be posting more tips and advice to home sellers and buyers. Are you looking to sell your home? Let’s have a chat even if right now isn’t the best time. I have decades of experience in the Durango real estate market and can help you with your plans.

Come and see what your home is worth instantly, zero hassle and free!

-Come and see homes for sale in your area here-

Give me a call at 970.335.8225 or send me an email at

When Is the Best Time to Sell Your Durango Home?

When is the best time to sell your Durango home? Spring time through early fall tends to be Durango’s busiest real estate season, with the majority of homes being listed and sold and more sellers and buyers become interested in the prospect of moving into a new home. Statistics can be misleading, simply because it is more comfortable to buy during the spring and summer time doesn’t necessarily mean it is the best time to have a home for sale. While there are many different factors that come into play when determining the amount of sales during any particular season, Winter can be a great time to sell your Durango home since there is less active inventory. Buyers looking during the winter months are typically very serious about a purchase. On the other hand, buyers with children are more apt to purchase a home in the summer during the school break, while in a mountain town like Durango some buyers and sellers aren’t willing to move during the freezing months of winter.

What season is best to sell your Durango home?

The 4 seasons of real estate


With the current Durango in town market being a seller’s market, the influx of homes makes it harder for a home to stand out from one another. The average home in Durango stayed on the market for about 3 ½ months before it was sold. Listing in February and March puts your home inline to sell during the peak season where there are more buyers looking for their dream home.


Are you looking to sell your Durango home? Let’s have a chat even if right now isn’t the best time. I have decades of experience in the real estate market and can help you with your plans.

You can see what your Durango home is worth here!

Give me a call at 970.335.8225 or send me an email at

Durango Real Estate Definitions: Covenants

Durango real estate has a multitude of definitions that you’ll want to know when you get into the real estate market. Today I would like to go over what a covenant is in regards to real estate.


Ever wonder what is stopping your neighbor from starting a junk yard in their front yard? While it is most likely due to common decency it’s guaranteed by covenants. Covenants in a general sense is a promise to engage or refrain from an action. So a covenant stating that lawns in a subdivision will not have grass exceeding 4” in height means all homeowners in that subdivision are obligated to have their lawns mowed to keep in compliance.


To quote Wikipedia:

In property law, land-related covenants are called “real covenants” and are a major form of covenant, typically imposing restrictions on how the land may be used (negative covenants) or requiring a certain continuing action (affirmative covenant). These may also “run with the land” (called a covenant appurtenant), meaning that any future owners of the land must abide by the terms, or may apply to a particular person (called acovenant in gross).[5] … in the United States such covenants are examined more closely, but with exceptions affirmative covenants have been permitted to run with the land.[6]

Hillbilly Yard

Covenants come in two flavors, affirmative and negative. An affirmative covenant is one where a property owner must actively perform an activity, like maintaining their lawn, keeping sidewalks cleared of snow, and paying homeowner association (HOA) dues. A negative covenant prevents a property owner from doing an activity, such as leaving a hoard of items on the lawn, blocking a neighbor’s view, and possibly construction of an exterior building.

You’ll find the vast majority of covenants are written into the deed of a property, and can be obtained from the HOA that the property belongs to or if a HOA is absent a local title company will be able to pull it so long as it is recorded. Some properties do not have covenants attached to them and can be a desirable choice for those who like to live without restrictions, while properties with covenants may attract those who like a sense of order and uniformity in a neighborhood. Both types of properties have their merits and detriments and it is up to the potential owner to decide which is best for them

Real estate mistakes can cost you big time in a truly short time. Having an experienced real estate agent at your side who can guide you through the real estate process is indispensable. I’m always happy to help with any questions you may have in real estate.

Give me a call (970) 335-8225 or you can email me at

You can browse homes for sale in the Durango area here, and you can see what your home is valued at here

If you are out and about looking at real estate, my real estate companion app can help!

Text “kwgallantrealestate” to 87778 or scan this QR code

Gallant Network App QR code


PMI, what is it?

The real estate market in Durango is going strong and now is a great time to get involved! Real estate isn’t as simple as most people imagine though, with all types of confusing and bewildering terms and acronyms being thrown around. If you can take just a moment I would like to tell you about acronym- in particular, PMI.


Private Mortgage Insurance



PMI is one of many acronyms that you’ll hear thrown around in conversations involving real estate, but what exactly is it? PMI, or P.rivate M.ortgage I.nsurance (also known simply as mortgage insurance)  is a special type of insurance that is required on real estate loans if the down payment is less than 20% of the total loan amount.


While fees vary depending on the size of the loan and your credit score they typically range from 0.3% to 1.5% of the original loan amount per year. More often than not PMI premiums are tax deductible (depending on Congress’s mood that year). The good news is that you aren’t stuck with PMI for the entire duration of your home loan, only while the balance of your home loan is over 80% of the value of the home when purchased. Lenders are required to automatically terminate PMI once your outstanding loan balance drops to 78% of the home’s original value. Because of the 2% discrepancy between the eligible drop off amount and the automatic drop off date you can save some of your hard earned money by keeping track of your loan amount and sending in a request to have PMI removed from your loan once your loan balance is at 80% of the original home value.


It is important to note that mortgage insurance is different for FHA (F.ederal H.ousing A.dministration) loans as FHA loans require mortgage insurance for the life of the loan. FHA loans aren’t actually from the FHA but instead are insured by the FHA.


Are you looking to buy a home? Let’s have a chat even if right now isn’t the best time. I have decades of experience in the real estate market and can help you with your plans.


You can see what local homes sold for here!
Give me a call at 970.335.8225 or send me an email at