How Much Is PMI (Private Mortgage Insurance)?
If you are looking to buy a home but are putting in less than a 20% down payment, you’ll likely be paying PMI or Private Mortgage Insurance.
What Is 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.
When Is PMI Required?
PMI may be required when you’re purchasing a house or refinancing your mortgage.
Who Provides PMI?
If you do need to pay PMI, your lender, not you, will choose the provider of the PMI. In most cases, you won’t know the provider as you make the payment directly to your lender, and they will pass the PMI portion along to the PMI provider.
When Do You Pay PMI?
PMI payments can be paid in a few ways depending on PMI type (more on that below). Your lender may let you choose how you pay your PMI, and others will make that decision for you.
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