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What is PMI? Is PMI always required on low-down home loans?

Asked by Trulia Chicago, Chicago, IL Thu May 23, 2013

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PMI = Private Mortgage Insurance. FOr most loans if you put down less than 20% then you will have to pay PMI.
0 votes Thank Flag Link Wed May 29, 2013
A lot of loans with 5% and 10% comunity banks dont have PMI
0 votes Thank Flag Link Fri May 24, 2013
PMI = Private Mortgage insurance. When you put down less than 20% down-payment, lenders require PMI to insure that if you default they will be left with some type of equity.

PMI can be paid up front in one lump sum or as an additional monthly payment until your reach 78% LTV (loan to value) paying your down your principal on the mortgage - then PMI will drop off.

Most conventional mortgages require 5% minimum downpayment.
FHA requires 3.5% minimum downpayment and charges MIP (there is more to this one)
Guaranteed Rate can go as low as 3% with the qualifying home buyers.
VA - no downpayment and no PMI

To find out more, go to my website at https://www.guaranteedrate.com/maryKayLaurent

And pull down the e-book "Demystifying the Mortgage Process" you'll learn:
1. How to shop for and get a low cost and low rate mortgage
2. What's important to lenders in order to qualify you for a mortgage
3. What credit scores are and why they're important in the mortgage process
4. The Dos and Don'ts before applying for a mortgage
5. What documents are involved in getting a mortgage
6. The steps and timeline for getting a mortgage and buying a home

Also on my website you can apply for a mortgage, get a pre-approval letter in 10 minutes and a free credit report.

Please let me know if I can be of further assistance!

Mary Kay Laurent
Associate Vice President of Mortgage Lending
marykay.laurent@guaranteedrate.com

http://www.guaranteedrate.com/MaryKayLaurent

o: 773.516.6859 / m: 312.403.4150 / f: 773.435.0681
3940 North Ravenswood , Chicago, IL 60613
NMLS ID: 870598
NMLS ID 2611 / NMLS Consumer Access / Licensing Information

State License Numbers: CA - CA-DOC870598 - 4130699, IL - 031.0032236 - MB.0005932, WA - MLO-870598 - CL-2611
0 votes Thank Flag Link Fri May 24, 2013
Anything under 20% requires PMI.
0 votes Thank Flag Link Thu May 23, 2013
If you are a Veteran and use a VA no money down mortgage, then no PMI.
Happy Memorial Day everyone.
0 votes Thank Flag Link Thu May 23, 2013
PMI stands for Private Mortgage Insurance and is required on any loan with less than 20% down payment. It is included as part of your monthly mortgage payment and the amount is based on factors such as of your credit score and down payment.
0 votes Thank Flag Link Thu May 23, 2013
Its the insurance for the loan in thw case the you default in the loan
0 votes Thank Flag Link Thu May 23, 2013
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