BEST HOME SEARCH

ALBERTA 
ALASKA 
ALABAMA 
ARKANSAS
ARIZONA 
BRITISH COLUMBIA 
CALIFORNIA 
COLORADO 
CONNECTICUT 
DISTRICT OF COLUMBIA 
DELAWARE 
FLORIDA 
GEORGIA 
HAWAII 
IOWA 
IDAHO 
ILLINOIS 
INDIANA 
KANSAS 
KENTUCKY 
LOUISANA
MAINE  
MANITOBA 
MARYLAND 
MASSACHUSETTS 
MICHIGAN 
MINNESOTA 
MISSOURI 
MISSISSIPPI 
MONTANA 
NEBRASKA 
NEVADA 
NEW HAMPSHIRE 
NEW JERSEY 
NEW MEXICO 
NEW YORK 
NORTH CAROLINA 
NORTH DAKOTA 
OHIO 
OKLAHOMA
ONTARIO 
OREGON 
PENNSYLVANIA 
PUERTO RICO
QUEBEC 
RHODE ISLAND 
SOUTH CAROLINA
SOUTH DAKOTA 
TENNESSEE 
TEXAS 
UTAH 
VIRGINIA 
VIRGIN ISLANDS 
VERMONT 
WASHINGTON 
WEST WIRGINIA 
WISCONSIN 
WYOMING
what's PMI? PDF Print E-mail

What is PMI?

Private mortgage insurance, or PMI, insures the lender against a default. It is required when the borrower is making a cash down payment of less than 20 percent of the purchase price.
PMI costs vary from one mortgage insurance firm to another, but premiums usually run about 0.50 percent of the loan amount for the first year of the loan. Most PMI premiums are a bit lower for subsequent years. The first year's mortgage insurance premium is usually paid in advance at the close of escrow, and there is usually a separate PMI approval process.

Lenders generally turn to a list of companies with whom they regularly work when lining up private mortgage insurance.
In most cases, PMI can be dropped after the loan to value ration drops below 80 percent. The Homeowners Protection Act requires PMI to be dropped when the loan-to-value ratio reaches 78 percent of the home's original value AND the loan closed after July 29, 1999. For other loans, find out from your lender what procedure to follow to have PMI removed when your equity reaches 20 percent.
For homeowners who have improved their properties and believe that their equity has increased as a result of these improvements, refinancing the property at a loan-to-value ratio of 80 percent or less is another possible way of eliminating PMI payments.

Questions about Best Home Search Real Estate?

Ask us below or Call us Now at 843 849 7587

AddThis Social Bookmark Button
 
< Prev   Next >

Syndicate this Site

Get the newest real estate Information from our site delivered right to your desktop!

Just Listed RSS Feed

See the newest properties as soon as we enter them in your favorite feed reader!

Don't worry about missing the right one... we make it easy for you!
RSS

Payment Estimator

Loan amount: $
Down payment: $
Annual interest rate: %
Term of loan: years
Total interest:
$
Monthly payment:
$
© 2010 Jay Rogers   Real Estate Websites - Free Real Estate Advice - Real Estate Marketing