What is PMI and how do I know if I need it?

PMI is Private Mortgage Insurance. When you are financing a home and you put less than 20% down, the lender requires that you obtain an insurance policy that will cover the lender in case you default on the loan, and the lender is forced to foreclose. This insurance is paid for by you... Depending on the loan product you use for financing will determine if which type of mortgage insurance you will need (Mortgage Insurance (MI) or Private Mortgage Insurance (PMI)). Most government loans require MI, no matter how much you put down.. and conventional financing requires some type of MI if your down payment is less than 20%... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

PMI is private mortgage insurance which is a 3rd party provider of insurance to protect the conventional lender against default if the borrower is putting less than 20% down. On conventional there are several ways to pay this required insurance when applicable, but not required if 20% or more down. For government programs in which they insure the lender against default (such as FHA), the PMI is required and just recently required for the life of the loan with specific variables. You would want to talk with your Loan Officer on the specifics.

PMI is required on conventional purchase loans with less than 20% down.

PMI is required is you make a purchase and have less than a 20 percent down payment.

Spot on William and others

pmi is private mortgage insurance, on a conventional loan it is required on any loan to value over 80%It is required on any new FHA loan regardless of loan to value.