FYI on PMI: The Facts about Private Mortgage Insurance | RISMedia’s News Hub
The term “private mortgage insurance” can be misleading. PMI protects the lender, not the borrower, in the event the borrower misses a payment.
Consumer Reports estimates PMI premiums cost 0.5 to 0.6 percent of the original mortgage amount, but the percentage can increase or decrease based on factors such as credit score and down payment amount. In most instances, the cost is applied to the monthly mortgage payment.
Unlike homeowners insurance, borrowers subject to PMI cannot shop for an insurer; they can, however, request that their lender find the lowest premium possible.
To learn more about private mortgage insurance, or to discuss financing options, contact me today!
Source: Consumer Reports