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PMI - What is it? Private Mortgage Insurance - it is an insurance policy that protects the lender in case a borrower defaults on the loan, and the value of the house is lower than the loan balance. PMI - How did I get it? You put less than 20% down on your house when you purchased it. PMI - Who pays for it? You do. Every month, as part of your mortgage payment. PMI - How much is it costing me? Apprxoimately $40-$50 per month per $100,000. PMI - Who benefits from it? The lender. PMI - How do I get rid of it? You turn in an appraisal performed by a Certified Appraiser that verifies your home's value is at or below 80% of the loan along with a request to remove the PMI. For more information on PMI and the Homeowners Protection Act, try one of these links: |