PMI - Private Mortgage Insurance

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​The general practice among lenders is to require MI with down payments of less than 20%, with an insurance rate of 1.0% to 6% of the initial loan amount depending on these factors:​

• credit score
• fixed or variable
• loan-to-value (LTV)
• percent of the loan insured

Payments can be annually, monthly or split (a combination of both). The borrower should check with a CPA to determine if this premium is tax-deductible because tax laws can change.