How is mortgage insurance determined? Is it a flat fee, a percent of the sales price, a percent of the mortgage? I know PMI will be applied if a down payment of less than 20% is made, but how is the cost of it determined?
2007-01-03 06:22:27 · 5 answers · asked by sprggb 2 in Business & Finance ➔ Renting & Real Estate
The cost of mortgage insurance varies considerably based on several factors which include: loan amount, LTV, occupancy (primary, second home, investment property), documentation provided at loan origination, and most of all, credit score. It will be different for each scenario.
2007-01-03 07:14:52 · answer #1 · answered by Jamie B 1 · 0⤊ 0⤋
PMI is based on the amount you owe on the home over 80% and on your risk of default. Each company will get slightly different calculations and prices. That being said your best bet is to find a mortgage program that does not require PMI. There are some that allow one loan without PMI, but at a higher interest rate, but it is usually best to go with a loan for 80%, and a second loan for the remainder. This is usually the cheapest option, and it allows you access to hundreds of more programs with better rate on the larger loan. If you want help, feel free to call Ron @ (619)379-2063.
2007-01-03 07:23:22 · answer #2 · answered by Ron B 3 · 0⤊ 0⤋
plan on paying anywhere between 12% - 35%
the closer you can get to putting 20% of the down payment into the transaction yourself, the lower the % will be for your mortgage insurance.
2007-01-03 16:05:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It's insurance and calculated differently depending on the company. Just like auto, home or any other insurance. figure 1/4% of the loan amount and you're bout right.
2007-01-03 06:30:40 · answer #4 · answered by Anonymous · 0⤊ 0⤋
However they friggin want to!
When I bought my condo as a first time home buyer, I wanted to know what dollar amount my PMI was. NO ONE could give me an answer!
On top of that, when you reach your 20% equity, you have to refi to get rid of it.
2007-01-03 06:46:39 · answer #5 · answered by Anonymous · 0⤊ 1⤋