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Mortgage Insurance Rates

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Daniel Cohen
UpdatedApr 26, 2007
What impacts my PMI?

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

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 PMI rate 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 per month)

575-599, 2% ($333 per month)

A pretty big difference!

To get a free mortgage quote and see if you can save, click here: Free Mortgage Quote

I hope this information helps you Find. Learn & Save.