PMI Question!!!!!!!

[tex]

We were pre approved for a mortgage in early Feb. and our mid score was 619 it has taken a small jump to that next tier of 620.  Will this lower our PMI rate? and how much? I don't think it will help too much on the interest rate. Hopefully more things will update before we close by March 14th and get us to maybe 625 to 630 range.

Message Edited by tex on 03-03-2008 01:12 PM

[ShanetheMortgageMan]

A little late on my response but mortgage insurance (MI) companies are requiring a minimum of a 620 score for conventional loans these days.  The monthly MI rate is determined by the loan-to-value, loan amount, type of transaction (refi vs. purchase), loan term (ARM, 15-year fixed, 30-year fixed, etc.) and credit score.

FHA's MI is still not score based.  FHA charges a monthly MI rate of .5% on all loans except for in the situation where the term is 15 years or less and the loan-to-value is 90% or below... so someone taking out a 15-year fixed FHA loan at 90% LTV would not have monthly MI.