PMI Insurance Help!?

Question

How is private 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?

I am doing 100% financing and my PMI is costing almost $200 a month

Answer 1

Try this link:

http://rateestimator.rmic.com/

Most of the questions are pretty intuitive - your coverage level needs to be 35% unless you are doing a reduced MI coverage program such as My Community or Home Possible, in which case it would be 20%.

If you need any help in determining it, shoot me an email - but I doubt that someone has calculated it wrong for you.

Answer 2

i'm a private loan representative and there are some diverse innovations you have. One: you may take this mortgage and then refinance it superb away and have a clean appraisal carried out with the real fee of the homestead. in maximum circumstances you need to attend approx. 6 months yet while ou have quite solid credit some lenders would be waiting to do it the day when you sign this mortgage. merely ensure you have no longer have been given a pre-pay penalty on the non-public loan. 2: you may however the present mortgage into 2 loans. the 1st mortgage would be 80% of the acquisition fee and the 2d would be 20%. then you definately won't have PMI and supply your self sometime to do the refinance. this will additionally provide you a decrease pastime fee on the 1st, yet a extra robust on the 2d. each and every from time to time it quite is extra maximum budget friendly then doing the PMI, yet each and every from time to time no longer. It relies upon on the case. 3: or you're able to do any different way which you already understand. which fits as properly. returned look ahead to pre-pay effects and that i could according to danger verify yet another lender to confirm you're starting to be the wonderful deal you qualify for, in case you have no longer already.... Congratulations on the recent homestead and robust success, want any further help or information please fell unfastened to touch me...

Answer 3

All above answers are good answers, but your only alternative is doing a split loan like an 80/20, but unfortunately lenders no longer do those.

If you make less than 100k a year, PMI is tax deductible, so all said and done the cost is not much higher than the 80/20's people used to do.

Answer 4

it's costing almost 200 because you're probably doing the FLEX 100 loan.

Most lenders dont do the government programs like MyCommunity that has a low PMI cost.

there are many websites that can help you with a quote.

PMI is determined by Loan to value, property type, program type, product type, and your credit score.

Your credit score can make the PMI very high if it's under a 620 middle score

Answer 5

PMI varies and probably started going up with the foreclosures .
At $200 extra / month , you are probably figuring you could have saved for awhile and gotten that 20% down .
That is $2400 / yr !
Did the lender explain the consequences (PMI) when you don't put 20% down ?

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Answer 6

P.M.I. has charts to determine their mo. pmt., also these charts have a cross index as to the type of loan, and term If you have a fixed 30 year, and I am guessing your Mortgage amt. is $261,000.00 X .0092 = 2401.20 divide by 12 = $200.10. This is based on a 30 yr. fixed mortgage, the amount is different for an adjustable. P.M.I. last for a pre-determined amount of time, after you have built 20% equity, and can prove it, with an mortgage appraisal , it can be removed. Hope this helps, Good Luck!

Answer 7

The annual cost of PMI varies between 0.19% and 0.9% of the total loan value, depending on the loan term, loan type and proportion of the total home value that is financed