What is PMI?

Private Mortgage Insurance (PMI) protects lenders if you default on your loan. It's required when your down payment is less than 20% of the home's purchase price.

PMI Rates

• • Excellent credit (740+): 0.3% - 0.7%
• • Good credit (680-739): 0.4% - 0.9%
• • Fair credit (620-679): 0.7% - 1.2%
• • Poor credit (below 620): 1.0% - 1.5%

PMI Removal Options

• Automatic: Removed when LTV reaches 78%
• Request removal: When LTV reaches 80%
• Reappraisal: If home value increases significantly
• Refinancing: New loan with 20%+ equity

Tips to Avoid PMI

• • Save for 20% down payment
• • Consider piggyback loans (80-10-10)
• • Look into VA or USDA loans
• • Consider lender-paid PMI options