What is the PMI factor on a conventional loan?
Date: 2009.12.12 | Category: Uncategorized | Tags: The private mortgage insurance (PMI) conforming loan factor varies based on credit score and loan to value. This discusses PMI at different credit scores. For people with FICO scores from 640-719, this is a good example of a FHA vs Conventional comparison. In general, the past few years of the credit crunch have caused two large changes for PMI rates: • PMI is available to less borrowers • PMI is more expensive Many PMI companies have moved their minimum FICO requirement up 40-80 points. It was previously available down to a 620 FICO score at a low rate. PMI is also 20% more expensive for even good borrowers these days. However, where a 720 FICO used to see roughly the same PMI rate as a 680 FICO, now there is a gap. For example, at a 95% loan, the rates look like this: • 700 FICO: 0.94% or roughly $78 per month per $100,000 in loan amount • 699 FICO: 1.20% or roughly $100 per month per $100,000 in loan amount One point in your credit
