What is PMI?
A. PMI operates throughout the world with head-office in the USA. The PMI goal is promotion of the project management profession. Current information about the many benefits of joining PMI may be found at www.pmi.org. Joining PMI is achieved by printing the (attached) application form, then posting or faxing the completed form to PMI in the USA. A much faster method is to apply online. Details of both approaches are at http://www.pmi.org/prod/groups/public/documents/info/gmc_membershipoverview.asp. Note that payment can only be made in $US – the simplest way of doing this is by supplying credit card details on the form. The cost of joining PMI is $US119 plus $10 joining fee, with the cost of joining the Canberra Chapter an additional $US40 (all on the same form and sent to the USA). The $A cost is determined at the time of processing in the USA, so the exact cost depends on the floating exchange rate at a particular point in time. Many (regional) Chapters and Specific Interest Groups h
PMI is Private Mortgage Insurance. PMI is designed to protect the credit union against loss should a borrower default on their home loan. PMI is required for a loan that is for more than 80% of the sales price of the property. PMI also would be required on refinance loans which are more than 80% Loan-to-Value (LTV). Loans with PMI include an insurance premium that is added to the monthly payment which will continue until the principal loan balance is paid down to less than 78% LTV. When the principle loan balance reaches 80% LTV, a member may send a written request to MCU to discontinue PMI. However, PMI automatically terminates when the principle loan balance is 78% LTV. Return to the top of page.
PMI (Private Mortgage Insurance) is insurance that provides your lender a way to recoup its investment if you are unable to repay your loan. It is usually required when the loan amount is more than 80% of the lesser of the home’s value or the purchase price, depending on whether you are buying or refinancing. If you buy a home and you don’t have 20% as a down payment, you will probably have to pay PMI. Government loans such as the USDA Rural Development loan do not require PMI, but do require a guarantee fee. PMI insurance offers no protection for the homeowner.
A. PMI, or private mortgage insurance, is a required insurance premium paid to insure the mortgage when the down payment is less than 20% of the purchase price. Mortgage insurance usually requires an initial premium payment and may require an additional monthly premium which is paid as part of your escrow payment. The premium protects the lender against loss in the event of default or foreclosure of the mortgage.
PMI stands for Private Mortgage Insurance. These are privately-owned companies that provide mortgage insurance that protects lenders against some or most of the losses that result from defaults on home mortgages. The Credit Union only requires PMI for borrowers making a down payment of less than 20% with a Conventional Mortgage Loan. DLFCU does not require PMI for Home Equity Loans or our 5 Year Balloon Mortgage Loan.
