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Unfortunately, many home buyers simply have no choice but to take on private mortgage insurance. If you fall in this category, don't take on a higher rate than necessary. Different lenders will have different private mortgage insurance rates and you should shop around for the lowest one as vigorously as you shopped for the lowest mortgage rate.
Start by filling out some online mortgage applications to get various quotes from different brokers and lenders. Examine each of these and pick the best few in terms of rate, closing costs, and terms. Then, approach each of them for more details on how they calculate their private mortgage insurance rate.
Get clear answers to your questions because the smallest changes in these figures will alter your monthly payments. Once you have gotten multiple quotes on a private mortgage insurance rate, you are equipped to make the smartest decision in terms of your mortgage loan. You can find lower private mortgage insurance rates with a little effort and a lot of question asking.
I am a mortgage loan officer in the state of Texas. My client sent this link to me and after reading, found myself a little "baffled". First..for clarification, LENDERS do not have different private mortgage insurance rates...PMI companies have different PMI rates. 2nd - I pulled 4 different PMI companies and for 95% LTV/ 680 score/ 30% coverage, their rates WERE ALL THE SAME. I think some clarification needs to be added to your article. It has been portrayed that the borrower can shop mortgage rates and that is clearly not the case.