Lenders require you to get Private Mortgage Insurance if the loan-to-value ratio of the home is higher than 80 percent. Even though the additional 20 percent is borrowed, this still keeps your from the PMI requirement. However, your interest rate will be higher than with a.
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Private Mortgage Insurance, or PMI, is insurance that protects the lender against loss if you (the borrower) stop making mortgage payments. Even though it protects the lender and not you, it is paid by you.
What do they look for in a BPO to cancel PMI? Find answers to this and many other questions on Trulia Voices, a community for you to find and share local information. Get answers, and share your insights and experience.
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Ken Perry, PMP, PMI-ACP. Ken Perry is a Certified Project Management Professional who practices project management daily at Landstar System Inc. and trains professionals on project management and project leadership most recently at the University of North Florida.
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