Do i need private mortgage insurance?

2nd Dec 2009 by JonB

PMI is required if the LTV of a loan is over 80%. The reason most people avoid PMI , but still obtain 100% financing is because of the 80/20. The first loan being 80% LTV and a second loan with 20% LTV. There are some loans with LTVs around 90% that get around the PMI requirement, but typically high LTV financing is broken up into 2 loans to avoid PMI.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com

28th Nov 2009 by Burt Carlson

Lenders doing conventional home loans (loan under $417,000) require Private Mortgage insurance (PMI) if the borrrower cannot put at least 20% down. So, if a borrower is not puting 20% or more down they will be required to pay PMI. The premium is determined by the insurer and is based on the loan to value (LTV).

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com