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There are a limited number of private mortgage insurance companies in the United States. However, this does not mean that you do not have choices. Lenders will require you to have private mortgage insurance (more commonly called PMI) if you are making a down payment of less than 20% of the value of a home. PMI is also required if you are refinancing a home and the loan to value ratio is higher than 80%.
Borrowers may be able to negotiate with their lenders and have them pay the cost of private mortgage insurance. Although this will result in a higher interest rate, this may be more affordable than the monthly premium that will need to be paid.
Borrowers should request a private mortgage insurance quote for monthly payments, annual payments and for PMI built into your interest rate so you can determine which private mortgage insurance plan will be right for you.
The ability to put down less than 20% of the value of a home is possible due to private mortgage insurance companies. Private mortgage insurance has made home ownership a reality for millions of homeowners.