WHAT IS PMI PRIVATE MORTGAGE INSURANCE

Dated: 09/13/2018

Views: 125

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

Blog author image

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....

Latest Blog Posts

Upper Nyack OPEN HOUSE Sunday September 23

New to the market!  Check off all the items on your wishlist!    Mid-Century aesthetic on nearly an acre, set back in privacy bordering new Hester Haring Cason Preserve in Upper

Read More

Apple Picking Near Nyack

It's that time of the year again! In Nyack, New City, Warwick, Marlboro, and various other locations within an hour's trip. Apples ripe for picking, eating, and making apple tarts, apple

Read More

Yearly Snapshot Clarkstown New York Real Estate August 2017 Vs August 2018

CLARKSTOWN ROCKLAND COUNTY NEW YORK - REAL ESTATE STATS AUGUST 2017 VS AUGUST 2018How has the real estate market changed this year? These statistics reflect the month of August in each year.&

Read More

Fabulous Contemporary Open House 3 To 4 PM In Nyack

Fabulous contemporary home designed by Charles Winter with spectacular river views. Very private, beautiful landscape created by mother nature. Spacious Master Suite. Master Bath features steam

Read More