WHAT IS  PRIVATE MORTGAGE INSURANCE?

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Private Mortgage Insurance, or PMI is an insurance policy for the lender in case you stop making your monthly payments. Here's a guide on PMI, and other facts you should know before paying PMI.

PMI is essentially an additional payment as part of your mortgage that acts as insurance for the lender of a mortgage if the borrower stops paying back their loan.

What Is PMI?

PMI may be required when you’re purchasing a house or refinancing your mortgage.

When Is PMI Required?

Who Provides PMI?

If you do need to pay PMI, your lender, not you, will choose the provider of the PMI. As a result, PMI rates may vary depending on your lender, their provider, mortgage types, and PMI types.

When Do You Pay PMI?

PMI payments can be paid in a few ways depending on PMI type. Your lender may let you choose how you pay your PMI, and others will make that decision for you.

Lender-Paid Mortgage Insurance

With lender-paid mortgage insurance (LPMI), the lender will pay the mortgage insurance premium. However, you will pay for the PMI during the mortgage repayment in a slightly higher interest rate.

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