Private Mortgage Insurance

PMI Mortgage in NC, SC, VA, GA, FL

Private Mortgage Insurance (PMI) is a supplemental insurance policy often required for conventional mortgages when a buyer makes a down payment of less than 20%. Historically, purchasing a home required a 20% down payment, which limited access to homeownership for many buyers. PMI was introduced to bridge this gap, enabling buyers to secure a mortgage with a smaller upfront investment.

Arranged by the lender and provided by private insurance companies, PMI on mortgages in NC, SC, VA, GA, and FL protects the lender by reimbursing them for losses if the borrower fails to make loan payments. PMI is included in your monthly mortgage payment, along with principal, interest, and escrow for taxes and insurance.

PMI Mortgage in NC, SC, VA, GA, FL

Q&A on Private Mortgage Insurance for Home Loans in NC, SC, VA, GA, FL

1. How Much Does PMI Cost?

PMI costs vary based on:
  • Loan amount
  • Credit score
  • Down payment percentage
  • Loan type (fixed vs. adjustable) In general, PMI ranges from 0.3% to 1.5% of the loan amount per year, broken into monthly payments.

2. When Can PMI Be Removed?

  • Automatic Termination: PMI automatically cancels when the loan reaches 78% loan-to-value (LTV) based on the original home value.
  • Request Removal: Borrowers can request PMI removal once they reach 80% LTV through payments or home appreciation (with a new appraisal).

3. How Does PMI Differ From MIP (Mortgage Insurance Premium)?

  • PMI applies to conventional loans with less than 20% down.
  • MIP applies to FHA loans and is required for the life of the loan if the borrower puts down less than 10%.

4. What Are The Ways to Avoid PMI?

  • Put down 20% or more.
  • Use lender-paid PMI (LPMI), which builds PMI into the interest rate. We always go over these options when we preapprove you.
  • Get a piggyback loan (80-10-10 loan) – a first mortgage at 80%, a second mortgage at 10%, and 10% down. We will explain when we preapprove you.
  • Use VA (Veterans Association) loans if eligible, as they do not require PMI.

5. Does PMI on Mortgages in NC, SC, VA, GA and FLA Differ by State? 

While PMI guidelines are nationally standardized, factors like home prices, lender competition, and state-specific first-time homebuyer programs may affect PMI rates or available alternatives.

Partner With Us!

We will go over all the options with you so that we can find the lowest cost mortgage that fits your family’s needs! Let us unlock the full potential of your loan. Whether you’re a borrower, agent or a builder, our team is dedicated to guiding you through every step of the process. Contact us today to experience the personalized service and commitment that sets us apart! amy@amybonis.com

Scroll to Top