What is PMI?

If you make a down payment of less than 20% of the purchase price of the home, mortgage lenders generally require that you take out Private Mortgage Insurance (PMI) that protects the lender incase you default on your mortgage. You may need to pay up to a year’s worth of premium for this coverage at closing, which can amount to as much as several hundred dollars. One obvious way to avoid this extra cost is to make a 20% down payment. There are also other ways to eliminate PMI such as 80-10-10 financing which is further described in this section.

Legal | Privacy Policy | State Licenses | Partners
© 2010, Profolio Home Mortgage Corp. Loans made by Profolio Home Mortgage Corp., Headquartered at 3701 Briarpark, Suite 150, Houston, TX 77042 . All loans subject to credit, underwriting and property approval. Available loan products may vary by state. Stated, low documentation and no documentation loans may not be available for every product in every state.
Not all borrowers will qualify and this is not a commitment to lend. Terms and programs subject to change without notice. For some loan products, minimum loan amount is $50,000 ($10,000 in Michigan).
Home loan products may involve appraisal, title search and other fees, but there is no cost to obtain details or apply.