Negotiating PMI
Unfortunately, you can’t negotiate your PMI rates but there are other strategies you can employ to avoid PMI altogether (such as obtaining a piggyback mortgage).
The reason you can’t negotiate your PMI premium rates is because the lender that is requiring you to get it isn’t the one setting the rates. They’re getting a quote from one of major private mortgage insurance underwriters and the rates that the PMI underwriters are quoting are based strictly on your credit, down payment amount, and a few other factors. Since the lender doesn’t set the rate, you can’t negotiate with them, and since the PMI underwriters are dealing strictly with numbers, there isn’t any wiggle room their either because you can’t make two underwriters fight for your business.
What you can do, though, is negotiate other aspects of your home purchase such as title research fees, loan origination fees, homeowner’s insurance and the like but private mortgage insurance has little room for adjustment.
This entry was posted on Saturday, May 6th, 2006 at 7:47 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Have your say
Fields in bold are required. Email addresses are never published or distributed.
Some HTML code is allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>URIs must be fully qualified (eg: http://www.domainname.com) and all tags must be properly closed.
Line breaks and paragraphs are automatically converted.
Please keep comments relevant. Off-topic, offensive or inappropriate comments may be edited or removed.