Understanding Private Mortgage Insurance (PMI)
Private Mortgage Insurance (PMI), is a common term in the mortgage industry.
If you’re purchasing a home and put down less than 20%, you’re required to carry PMI. This insurance protects the lender in case a borrower defaults on their loan. PMI is typically paid monthly as part of your mortgage payment, alongside your property taxes and homeowner’s insurance.
Several factors affect the cost of PMI, including:
- Credit score – Higher scores can result in lower PMI costs.
- Down payment amount – The more you put down, the less PMI you’ll pay.
On average, PMI costs range between 0.5% and 1% of the loan amount per year, depending on these factors.
If you’re considering a home purchase with less than 20% down, feel free to reach out! We would be happy to run an estimate based on your situation to help you understand your potential PMI costs.
Contact us:
John Gilfedder: Phone: (720) 285-9854 Email: john.gilfedder@elevationscu.com
Chris Kassel: Phone: (303) 550-4482 Email: chris@kasselrealty.com
Anna Kassel: Phone: (720) 909-1469 Email: anna@kasselrealty.com
