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Mortgage Insurance Rates

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?

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Bill's Answer
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Bills.com | Find Learn Save

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.

Best,

Bill

Bills.com

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4 Comments

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  • BA
    Oct, 2009
    Bill
    Call a few insurance agents in Port Bolivor and ask. The rates will vary with the size of the lot and its location. "Expensive" is a relative term and depends on a risk analysis.
    0 Votes

  • MM
    Oct, 2009
    mike
    is insurance on an empty lot hard to get or expencive in port bolivor thanks mike
    0 Votes

  • BA
    Feb, 2009
    Bill
    You will need to discuss this with your current mortgage lender and other creditors.
    0 Votes

  • 35x35
    Feb, 2009
    eviehayes
    I have high credit balances due to Hurricane Ike and unexpected expenses. Is there a way I can be considered for a lower rate due to this natural disaster and the need to utilize my credit cards until Settlement from insurance is awarded? I have R-1's and I-1, etc and paid as agreed credit reports. I want to purchase another house once this is settled and I pay off my present mortgage. My income is approx $38,000 with dividends also from stocks and stock holdings fluctuating.
    0 Votes

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