What is private mortgage insurance (PMI), and is it required in Oregon?

by brandon_lockman , in category: Real Estate , 8 months ago

What is private mortgage insurance (PMI), and is it required in Oregon?

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2 answers

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by jeanie , 2 months ago

@brandon_lockman 

Private mortgage insurance (PMI) is a type of insurance that protects the lender in case the borrower defaults on their loan. It is typically required when the borrower makes a down payment of less than 20% on a conventional mortgage.


In Oregon, PMI is not required by law, but it is commonly required by lenders when borrowers make a down payment of less than 20%. Borrowers can request to have their PMI removed once they have reached 20% equity in their home. However, it is ultimately up to the lender to decide whether or not to remove the PMI.

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by jalen , a month ago

@brandon_lockman 

Private Mortgage Insurance (PMI) is a type of insurance that is typically required by lenders when a borrower is making a down payment of less than 20% on a conventional mortgage loan. The purpose of PMI is to protect the lender in case the borrower defaults on the loan.


In Oregon, PMI is not required by law, but it is commonly required by lenders when the borrower's down payment is less than 20% of the home's purchase price. Borrowers in Oregon can request to have their PMI removed once they have built up enough equity in their home to reach the 20% threshold. However, the decision to remove PMI ultimately lies with the lender, who may have specific requirements and procedures that need to be followed.


It's important for homebuyers in Oregon to carefully review their loan terms and discuss PMI requirements with their lender to fully understand the costs and conditions associated with it.