Buying a home...What is a PMI?

Answer 1

PMI stands for private mortgage insurance. Lenders will frequently charge a PMI when the borrower doesn't have a 20% downpayment for the home. That makes the lender nervous that you won't pay for motgage bills, so they want a little extra money to make it worthwhile to them. It's just extra money that you have to pay if you don't have a 20% downpayment.

Answer 2

Property Mortgage Interest - From wikipedia:
Private mortgage insurance (PMI) in the US, is insurance payable to a lender that may be required when taking out a mortgage loan. It is an insurance in the case that the mortgagor is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property. The annual cost of PMI varies and is expressed in terms of the total loan value in most cases, depending on the loan term, loan type, proportion of the total home value that is financed, the coverage amount, and the frequency of premium payments (monthly, annual, or single).

Answer 3

PMI is Personal Mortgage Insurance... Most mortgage companies require that you pay PMI when you have less than 20% down payment. Once you have paid 20% down you can get rid of the PMI.

Answer 4

Private Mortgage Insurance. This insures that your lender will get paid if you default on the loan. PMI can be avoided if your loan is equal to 80% or less than the appraised value of the home. One way around this is to get two loans. One for 80% and a "second" for whatever is not covered by your down-payment. Consult with your local mortgage broker or direct lender for more information on the subject.

Answer 5

i'm a loan representative and there are some different strategies you have. One: you are able to take this loan and then refinance it suitable away and have a sparkling appraisal performed with the real cost of the domicile. in maximum cases you're able to attend approx. 6 months yet whilst ou have truly reliable credit some creditors would be waiting to do it the day once you sign this loan. in basic terms determine you do not have a pre-pay penalty on the loan. 2: you are able to however the present loan into 2 loans. the 1st loan would be 80% of the acquisition cost 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 supply you a decrease interest fee on the 1st, yet a greater physically powerful on the 2d. sometimes that's greater value-effective then doing the PMI, yet sometimes not. It relies upon on the case. 3: or you're able to do any incorrect way which you already understand. which fits as nicely. returned watch for pre-pay outcomes and that i may be able to verify yet another lender to establish you have become the suitable deal you qualify for, in case you have not already.... Congratulations on the hot domicile and robust success, desire to any extent further help or information please fell unfastened to touch me...

Answer 6

You should be able to deduct your PMI from your taxes, just like home mortgage interest, starting this year!

Ask your accountant.

It's not always better to take a second loan. Do the math.

Answer 7

Private Mortgage Insurance is insurance payable to a lender that may be required when taking out a mortgage loan. It is an insurance in the case that the mortgagor is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property.

Answer 8

It's insurance for the lender that you pay for if you don't have a 20% down payment.
Get two mortgages if you don't have a 20% down payment.