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Do i need private mortgage insurance?

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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.

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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).

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