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Company Loan Type APR Est. Pmt.

Is PMI a Must?

Posted on: 29th Dec, 2007 06:38 pm
Doe I have to pay PMI on a refi? A lender told me it was a Fannie Mae requirement. But the loan is not from Fannie Mae.
What is your loan to value? MIP is for FHA loans and your loan to value doesn't matter you still have to pay it......The loan doesn't need to be from Fannie Mae......they don't lend directly.............the loan is sold to fannie mae.......PMI is required on loans with a loan to value over 80%....some lenders offer LPMI
Posted on: 29th Dec, 2007 06:51 pm
PMI is for conventional/conforming products.
MIP is for FHA loans.

PMI is required by FNMA/FHLMC if you are over 80% LTV on purchase/refinance of the property.

Some lenders may offer you LPMI (Lender Paid PMI).
Posted on: 30th Dec, 2007 05:00 pm
You may run across a lender with no MI up to 85% LTV but it's not common – a negotiated product. LPMI is sometimes pushed as "no MI" but this is inaccurate (brokers just "forget" to leave off the sandwiched "monthly")
Posted on: 31st Dec, 2007 03:43 am
Fannie Mae backs the mortgage loan that if offered by your mortgage lender. Your lender will still service your mortgage so you really dont deal with Fannie Mae. It is true that they require PMI insurance if you are borrowing more than 80% but there are alternatives to that. For example, some lenders offer "lender paid PMI". This can be quite a savings depending on how much you are putting down, your loan amount, credit score etc. I would compare a lender paid PMI loan before going ahead and paying the PMI. Right now you could still get a rate in the 5's with only putting 5% down with lender paid PMI insurance. To find out which lenders offer this option, go to

[Link deactivated as per forum rules. Thanks.]
Posted on: 04th Jan, 2008 11:39 pm
I am getting FHA loan, i put 20% down payment. Do i have to pay for PMI?
Posted on: 14th Oct, 2009 11:01 pm
As you are putting a downpayment of 20%, you won't have to go for the PMI.
Posted on: 16th Oct, 2009 02:02 am
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