How Much Is Private Mortgage Insurance?
If you are looking to buy a home but are putting in less than a 20% down payment,
you’ll likely be paying PMI or Private Mortgage Insurance.
PMI is an insurance policy for the lender in case you stop making your monthly payments.
Below is a guide on PMI, how much PMI is, and other facts you should know before paying PMI.
When Is PMI Required?
PMI may be required when you’re purchasing a house or refinancing your mortgage.
In addition, lenders may require PMI on certain loans if:
Your down payment is less than 20%
Your loan-to-value ratio is over 80%
In most cases, you won’t know the provider as you make the payment directly to your lender, and they will pass the PMI portion along to the PMI provider.
Who Provides PMI?
The most common PMI payment methods include:
When Do You Pay PMI?
Monthly and Upfront Premium
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