what does monthly PMI mean??? thank you!!

Asked by T.A.B., Gardiner, ME Wed Aug 20, 2008

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7
Jessica Bate…, Agent, Beverly Hills, CA
Wed Feb 8, 2017
PMI stands for Private mortgage insurance that is required on conventional loans when you put less than 20% down. FHA loans require MIP short for Mortgage insurance premium paid to the FHA to insure the loan. You have to MIP on FHA loans regardless of the amount you put as a downpayment
8 votes
Maria Morton, Agent, Kansas City, MO
Wed Aug 20, 2008
Private Mortgage Insurance is required on FHA loans and any mortgage where you put down less than 20% of the purchase price. (with the exception of some VA loans)
2 votes
Chris Covalle…, , Chicago, IL
Wed Aug 20, 2008
Monthly PMI refers to monthly privatge mortgage insurance payments. If putting less than 20% down, PMI has to be dealt with in some way-either by 1) splitting the mortgages into 2, commonly referred to as a 80/10, 80/15, etc. or 2) clients have the option of having 1 loan to 85%, 90%, 95%, etc. and paying PMI either as a separate monthly cost or having lender paid mortgage insurance which builds the PMI into the base interest rate. The PMI insurers the lender who is taking on the % of the loan which exceeds 80% of the home value. Please let me know if you need anything else.
2 votes
Steve Geving, Agent, Fort Myers, FL
Fri Feb 1, 2013
PMI is private mortgage insurance. It is only used on Conventional loans with less then 20% down payment. The typical rates are:
95% LTV = .62%-.78%
90% LTV = .49%-.55%
85% LTV = .32%-.35%
Increases may occur with lower credit score files

FHA has a form of PMI called MMI or monthly mortgage insurance. The rate as of feb-2013 is 1.35%. They also charge a Upfront Mortgage Insurance premium of 1.75%.

On either PMI or MMI, you multiple the percent times the loan amount. As an example $100,000 times .62% = $620 divided by 12 for a monthly amount of $51.66.

Steve Geving
Jones and Co Realty
239-573-1400
swflhomeresource.com
1 vote
Trex31613, Home Buyer, New York, NY
Tue Dec 27, 2016
What is the differance between PMI & P &I ?
0 votes
PMI is Private Mortgage Insurance... P&I stands for Principle and Interest.
Flag Tue Dec 27, 2016
Adelinecanga…, Home Buyer, New York, NY
Mon May 2, 2016
Iam in process to buy a home how i can avoid the PMI
0 votes
Adelinecanga…, Home Buyer, New York, NY
Mon May 2, 2016
Iam in process to buy a home how i can avoid the PMI
0 votes
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