2007-03-15 05:33:06 · 8 answers · asked by hrbtaxldy 1 in Business & Finance ➔ Renting & Real Estate
PMI= Private Mortgage Insurance
Generally required for conventional loans in excess of 80% of the market value or purchase price of your home.
For loans originated in 2007, it is tax-deductible.
If you have very good credit, 700+ scores, an 80/20 loan structure will avoid MI and might offer you the cheapest payments.
Anything with 620-660 scores, getting the 2nd mortgage can become impossible or simply too high in rate to have it make sense anymore, and taking the PMI is often the cheaper route.
A good loan officer will explore both options, and show you which is best for your particular circumstance.
2007-03-15 08:28:36 · answer #1 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
PMI, or Private Mortgage Insurance, is insurance that may be required by a mortgage lender to insure the loan against possible default by a mortgagee who does not have a certain minimum amount of equity in their new home, either through a downpayment or accrued through monthly mortgage payments. Typically PMI is required if the mortgagee has less than 20% equity in thesubject property. However, certain lenders, i.e., credit unions, have substantially lower equity requirements to waive PMI.
So in short: PMI is insurance for the lender. All loans do not Require PMI. PMI goes away after a certain amount of equity is gained in a house.
2007-03-15 12:40:42 · answer #2 · answered by Klaviernista 1 · 2⤊ 0⤋
if u pay a higher percentage on ur down payment then u won't have to pay the pmi that saves u about an extra $100. a month. its another way to get money out of u. u know that the first 5 to 6 years of buying ur house all the morgage payments is payin is into ur interest its not making a dent in ur loan. once that has past ur morgage payment goes towards the loan. so the pmi is just extra that they throw in there. u can ask the bank what are options that u can avoid that.
2007-03-15 13:13:01 · answer #3 · answered by gee 1 · 0⤊ 0⤋
all loans don't have PMI. only loan's that have PMI are loans that are for 100% financing of the house. you can get an 80/20 loan and not pay PMI. its the same as getting a 100% but you just make to payments a month instead of one.
2007-03-15 12:39:12 · answer #4 · answered by cmruffin1 2 · 0⤊ 0⤋
MOST loans these days do NOT have PMI. Even if you put 0 down, the odds are your Loan Officer will either break your loan into a 1st and 2nd, or give you a slightly higher rate for what's called LPMI (Lender paid mortgage insurance).
2007-03-15 13:41:00 · answer #5 · answered by Anonymous · 0⤊ 0⤋
PMI is private mortgage insurance. If you put any less than 20% down on your home purchase, the lender will try to stick you with it.
2007-03-15 12:42:49 · answer #6 · answered by loon_mallet_wielder 5 · 0⤊ 0⤋
Here learn all there is about PMI
HUD Private Mortgage Insurance (PMI) Information: http://www.hud.gov/offices/hsg/sfh/res/respapmi.cfm
Buena Suerte
2007-03-15 12:42:22 · answer #7 · answered by newmexicorealestateforms 6 · 1⤊ 0⤋
No sorry I don,t but ask the lender what it means it always good find out what youe getting best of luck on your new home
2007-03-15 12:39:26 · answer #8 · answered by pattibcacl 6 · 0⤊ 0⤋