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

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

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

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2 answers

by emilie.windler , 6 months ago

@brandon_lockman 

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


In Idaho, PMI is typically required when a borrower takes out a conventional mortgage with a down payment of less than 20%. This applies to homebuyers who are seeking a loan from a private lender rather than a government-backed loan program like FHA or VA.


It's important to note that PMI is an additional cost for the borrower and is usually built into the monthly mortgage payment or paid as a separate premium. The specific terms and cost of PMI vary depending on factors such as the loan amount, credit score, and loan-to-value ratio.


Once the borrower has paid down the loan balance to 80% of the home's original appraised value, they may be eligible to request the cancellation of PMI. However, it's always advisable to consult with a lender or mortgage professional for accurate and up-to-date information regarding PMI requirements in Idaho.

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by hermina , a month ago

@brandon_lockman 

Private Mortgage Insurance (PMI) is a financial safeguard for lenders when the borrower is unable to make a down payment of at least 20% on a home loan. This insurance usually becomes a mandatory requirement in Idaho when borrowers opt for a conventional mortgage and their down payment is less than 20% of the home's purchase price or appraised value. The specific conditions for PMI can be discussed with mortgage lenders directly as they may have varying policies and guidelines for PMI implementation in Idaho.