How Much is Private Mortgage Insurance in Florida

Florida lenders take a lot of risks while lending money for a mortgage. This is why lenders take protective measures in the case that a borrower defaults on their payments. One of the measures that a Florida lender takes is charging private mortgage insurance (PMI).

Private mortgage insurance, or PMI, minimizes the lender’s risk on borrowers who pay 20% or less of a down payment. With this insurance in place, lenders can recover their losses after the house’s foreclosure.

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Various factors are taken into consideration to calculate private mortgage insurance. Like the loan term, your credit score, the down payment amount, if you are buying a primary home or second home, the location of the property and if you are getting a loan to buy your home or refinance an existing mortgage.

There are also three different ways to pay your private mortgage insurance, which you choose based on your preference. You can either opt to have it paid upfront as a lump sum, you can pay it monthly with your monthly mortgage payment, or you can have it calculated with your interest rate.

Your mortgage insurance payments will not last throughout the entire mortgage term. PMI is required by law to be removed once your loan balance reaches 78%. After which you can use the same money you used to pay PMI to pay off your mortgage quickly.

With so many factors, calculations and decisions to make about getting private mortgage insurance, it can be confusing. This is where we, the Moreira Team can help you decide how much of private mortgage insurance you will need, so that you can buy your home even if you are only looking to place a small down payment.