What does PMI cost?
A Good Faith Estimate will be provided to you within a few days after we received your loan application. This disclosure will provide you with an estimate of your monthly PMI premium as well as the initial premium you’ll need to pay at closing. Additionally, we will be providing you a disclosure on your rights (if applicable) to cancel the PMI.
Costs vary from insurer to insurer, as well as from plan to plan. For example, a highly leveraged adjustable rate mortgage would require the borrower to pay a higher premium to obtain coverage. Buyers with 5% down payment can expect to pay a premium of approximately 0.78% times the annual loan amount ($92.67 monthly for a $150,000 purchase price). But the PMI premium would drop to around 0.52% times the annual loan amount ($58.50 monthly) if a 10% down payment was made on the loan.
PMI costs vary from one mortgage insurance firm to another, but premiums usually run about 0.50 percent of the loan amount for the first year of the loan. Most PMI premiums are a bit lower for subsequent years. The first year’s mortgage insurance premium is usually paid in advance at the closing. Copyright 2007 Inman News. All Rights Reserved.
