In most cases, if your first mortgage amount is greater than 80% of the property’s value, the lender will obtain Private Mortgage Insurance (PMI) to safeguard its investment against the possibility of default. PMI premium is collected monthly along with the mortgage payment.

Within three days after your loan application is submitted you’ll be sent an estimate projecting the amount of the monthly PMI premium. As your equity increases, you may qualify to have PMI removed.

There may be ways to finance your home so that PMI is not required. Your loan advisor can provide you with more information.