Pmi new york

PMI (Private Mortgage Insurance) in New York! Here's an overview:

What is PMI?

PMI is insurance that protects lenders against default on mortgages. It's typically required for borrowers who put down less than 20% of the purchase price as a down payment. PMI premiums are usually paid monthly or annually, and the cost varies depending on factors like loan amount, credit score, and loan-to-value (LTV) ratio.

PMI in New York:

In New York, PMI is regulated by the New York State Department of Financial Services (DFS). Here are some key points to know:

  1. PMI requirements: PMI is typically required for mortgages with LTV ratios above 80%. However, some lenders may require PMI for loans with LTV ratios as low as 75%.
  2. PMI rates: PMI rates in New York vary depending on the lender, loan type, and borrower's credit score. On average, PMI premiums in New York range from 0.3% to 1.5% of the original loan amount annually.
  3. PMI cancellation: In New York, borrowers can cancel PMI once their LTV ratio falls below 80%. However, lenders may have specific requirements for canceling PMI, such as a minimum credit score or a certain amount of equity in the property.
  4. PMI exemptions: Some borrowers may be exempt from PMI in New York, such as:
    • Veterans who have used their VA loan benefits.
    • Borrowers who have made a down payment of 20% or more.
    • Borrowers who have a high credit score (typically 760 or higher).
  5. PMI companies: There are several PMI companies operating in New York, including:
    • MGIC (Mortgage Guaranty Insurance Corporation)
    • Radian (Radian Guaranty Inc.)
    • Genworth (Genworth Mortgage Insurance Corporation)
    • Arch (Arch Mortgage Insurance Company)

Tips for PMI in New York:

  1. Shop around: Compare PMI rates and terms from different lenders and PMI companies to find the best deal.
  2. Check your credit score: A good credit score can help you qualify for lower PMI rates.
  3. Consider a higher down payment: Putting down 20% or more can help you avoid PMI altogether.
  4. Review your loan terms: Make sure you understand your loan terms, including PMI requirements and cancellation options.

I hope this information helps you navigate PMI in New York!