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Mortgage insurance question.

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tduke
Established Member

Mortgage insurance question.

I'm in the process of closing a loan with details below. The lender has given a quote for mortgage insurance that's 2.15% of the loan amount paid upfront. It's either that or I pay a ridiculous amount monthly. Is 2.15% a good rate? Can I shop myself and get a lower rate?

 

Conventional Loan for $152000

LTV - 95%

Credit Scores - 749, 752, 761

 


Starting Score: 626 TU FICO
Current Score: 735 EQ FICO
Goal Score: 780


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3 REPLIES 3
StartingOver10
Moderator Emerita

Re: Mortgage insurance question.


@tduke wrote:

I'm in the process of closing a loan with details below. The lender has given a quote for mortgage insurance that's 2.15% of the loan amount paid upfront. It's either that or I pay a ridiculous amount monthly. Is 2.15% a good rate? Can I shop myself and get a lower rate?

 

Conventional Loan for $152000

LTV - 95%

Credit Scores - 749, 752, 761

 


What kind of loan is this - conventional or FHA or something else?

When you say "pay up front" do you mean at the closing on the HUD or as a separate fee?

Are you rolling in the MI or are you including it in the cash to close?

Message 2 of 4
tduke
Established Member

Re: Mortgage insurance question.

It's a conventional loan, and the MI is being included as part of the closing costs.


Starting Score: 626 TU FICO
Current Score: 735 EQ FICO
Goal Score: 780


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Message 3 of 4
cdtotten
Established Contributor

Re: Mortgage insurance question.

In my area, for conventional PMI, if you elect to pay it upfront instead of monthly, it is typically around 1.95%, although it is based on many criteria (Credit score, LTV, DTI, reserves, home price, etc.). It can range from 1.5%-2.2% here.


This isn't something you can shop out yourself. Qualifying for PMI is actually harder than qualifying for a mortgage, so your lender typically has 1 company they go with and have good luck getting approval.


Starting Score: 627 EQ, 621 TU - 11/15/08
Current Score: 778 EQ, 781 TU, 778 EXP 07/20/12 Lender Pull
Goal Score: 800 EQ & TU


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