WHAT IS PMI PRIVATE MORTGAGE INSURANCE

Dated: 09/13/2018

Views: 271

If you are purchasing a home and your down payment is less than 20% most lenders require PMI.

Fast Facts

  • Your premium is based on your credit score

  • Mortgage insurance helps the buyer to get a mortgage, but it protects the lender.

  • Once the LTV (Loan to Value) ratio drops to below 78%, borrowers can request that monthly PMI payments be eliminated.

  • There are 4 types of PMI

    • Borrower Paid - Most common, paid monthly until 22% equity in your home based on the original purchase.

    • Single Premium – This is an upfront lump sum payment

    • Lender Paid – This paid by the lender in the form of a higher interest rate

    • Split Premium – Least common, this is a hybrid of the first 2 types, borrower pays part upfront in a lump sum and part monthly

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Donna Podesta

I am an experienced Realtor working in the Greater Hudson Valley Region which includes both Rockland and Orange County. My goal is to make my client's real estate experience a happy one. Because succe....

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