Amy Sherman, Home Buyer in Brooklyn, NY

Last one, sorry this is so helpful though :) What is PMI?

Asked by Amy Sherman, Brooklyn, NY Thu Mar 7, 2013

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PMI or Private Mortgage Insurance applies to conventional loans with loan-to-value ratio of over 80%, it is an insurance policy to protect lender against payment default and is issued by insurance companies. FHA loans are subject to MIP or Mortgage Insurance Premium which consists of Upfront (one time) MIP and monthly installments. FHA loans are insured regardless of the amount of down payment. Part of MIP may be refunded when you sell the property with some conditions and restrictions, of course.
1 vote Thank Flag Link Thu Mar 7, 2013
As mentioned below, PMI is private mortgage insurance. Again, I saw a few of your questions and I really feel like you'll benefit by meeting face-to-face with a Loan Officer. Think of it as a tutorial on mortgages. Sometimes looking for answers online can lead to further confusion.

I have offices in Brookly were we can meet and talk about this if you'd like. Feel free to contact me if you want to set an appointment. Good luck!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
2 votes Thank Flag Link Thu Mar 7, 2013
PMI is a mortgage insurance purchased from a private insurance Company, if the LTV is less than 80%. Required by Lenders.
0 votes Thank Flag Link Thu Mar 7, 2013
PMI is Private Mortgage Insurance, which is a fee that lenders tack on to insure their loan in case of default. Any conventional or FHA loan that does not have a 20% down payment along with it will require PMI of some sort. The more you put down on a property, the less PMI you pay.

For conventional loans, once you reach a 20% equity position in the home you can drop the PMI payment and save yourself some money. FHA loans will soon start requiring this PMI payment for the LIFE OF THE LOAN, regardless of how much you pay down your principal amount.

I recommend putting down as much as you can afford to pay as little PMI as possible
0 votes Thank Flag Link Thu Mar 7, 2013
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