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Question about PMI

I was wondering if a lender can still charge PMI even if the borrower already has 20% equity in the house upon purchase? I am new to home buying and I want to know how I can do away with paying PMI. by mcrawfor620 from Portland, Oregon. Jan 13th 2022 Reply

Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,636 contributions

The general rule is on your standard conventional loan, as long as you put at least 20% down payment, you do not need private mortgage insurance. FHA loans require mortgage insurance regardless of the down payment, and VA loans have no mortgage insurance ever. Even when you put less than 20% down, there is a gigantic amount of misinformation on PMI, its cost, when it goes away, and the benefit of having it versus stretching to make a 20% down payment, if 20% is a burden. I lend for properties in MN WI IA ND SD. Find me at - Cambria Mortgage, NMSL 274132

Jan 17th 2022
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