Definition. Mortgage insurance protects the investor or noteholder if the borrower defaults on the loan. It lowers the investor’s risk when funding a home loan. In most cases, if you pay at least 20% down on your home, you’re not required to carry mortgage insurance.

Private Mortgage Insurance (PMI) PMI protects the lender against default. It’s generally required when the down payment is less than 20%. It’s usually included as part of the monthly payment, but in some cases you can pay it upfront as a part of closing costs.

An escrow analysis can raise or lower your monthly escrow payment for the upcoming year due to changes in your tax and insurance amounts. Read more. Escrow Basics, Escrow Analysis, Escrow Shortage, Escrow Surplus, Property Taxes, Insurance.

Private Mortgage Insurance (PMI) For conventional loans, unless you have 20% equity in your home, a small portion of your monthly payment goes toward paying for PMI, which protects your lender in case a borrower defaults.

Removing PMI If you’re required to carry PMI, we’ll cancel it automatically on the date your loan-to-value (LTV) ratio is scheduled to reach 78%. It can be called Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP).

The requirements to remove MIP are complex and depend upon multiple factors and scenarios which are too numerous to list here, but please contact us to review your options for cancelling MIP. What is mortgage insurance (PMI / MIP) and how to request removal. Removing MIP.

Removing PMI If you’re required to carry PMI, we’ll cancel it automatically on the date your loan-to-value (LTV) ratio is scheduled to reach 78%. It can be called Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP).

You are required to have enough insurance to cover the lower of either the replacement cost of the home or the remaining principal balance on your loan. Example: If your unpaid principal balance (UPB) is $80,000 but the replacement cost is $120,000, you need to carry a minimum insura...

Private Mortgage Insurance (PMI) For conventional loans, unless you have 20% equity in your home, a small portion of your monthly payment goes toward paying for PMI, which protects your lender in case a borrower defaults.

It can be called Private Mortgage Insurance ( PMI) or Mortgage Insurance Premium ( MIP ). ... including how you may be able to eliminate PMI altogether if your home’s value has risen enough. If it has improved since you applied for your last mortgage, you may be eligible fo...