Mortgage Insurance Rates - The Bills.com Blog

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Mortgage Insurance Rates

Question: Can you give me examples of what impacts my PMI or mortgage insurance rates? And, does my credit score impact my PMI rate?

Answer: I will give you a couple of examples relating to PMI rates at various FICO scores. Keep in mind that there are many variables that can affect your PMI rates in addition to FICO scores:

1.Down payment (a lower down payment will increase the PMIrate you are required to pay).
2.Type of loan (an ARM will typically have a higher PMI rate than a fixed mortgage, a second home will have a higher rate than a primary residence, etc.).
3.The amount of insurance coverage (expressed as a percentage of the loan balance).

To keep things consistent,

I’ll give you an example of a $210,000 house/primary residence. The buyer has put 5% down, leaving ~$200,000 in an adjustable rate mortgage. The PMI coverage is 25%.

The approximate rates at the following FICO scores would be:

620+, 0.77% ($128 per month)
600-619, 1.47% ($245 pe rmonth)
575-599,

2% ($333 per month)

A pretty big difference!

To get a free mortgage quote and see if you can save, click here:
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I hope this helps you Find. Learn. Save.
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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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