What do you pay in PMI?

Question

Hey All,

I was looking into buying a SFR at 5% down. I was wondering what you pay for PMI and if it kills your cash flow.

If you currently are paying PMI, what was you loan amount, down payment and monthly PMI cost?

Thanks,

Justin

Zack Karp · Answer

@Justin Pace for Conventional, it depends on your credit score, LTV, property type, and also the lender.  There are dozens of MI vendors, each with different rates, and the LO/lender selects the MI vendor.  For the credit score, the MI cost factor is tiered at 760+ being the lowest factor, then 740-759, and every 20 points lower and so on.  If you have the right LO, they will shop for you to find the lowest MI rate for your scenario.  If you have a lazy LO, or a big bank, or a lender with limited options, you might pay higher MI if you aren't shopping around for the lowest MI rate.

For FHA, it's the same rate for everyone, FHA sets the MI, which is what the reply above from @Taylor D. Jenkins is referencing.

Best of luck!

Taylor D. Jenkins · Answer

@Justin Pace

Not paying a mortgage yet but my lender has my PMI at 1.75% of the loan amount upfront and then 0.85% of the loan amount divided monthly. So for a $100,000 loan, $1750 upfront and then roughly $70/month (around $850/year). And I believe the payment is recalculated every year based on the amount of your loan at that time. You’d have to speak to your lender as the PMI can be different based on loan product: conventional, FHA, USDA, VA, etc