What is Private Mortgage Insurance (PMI)?
If the thought of trying to save 20% for a down payment has been keeping you on the homeownership sidelines, here’s some good news. With private mortgage insurance (commonly referred to as “MI”), you can get a mortgage with a much smaller down payment.
On a $200,000 home, for example, you could qualify for a mortgage with as little as 3% or $6,000 down if you have a loan with MI. That is much easier to save than the 20% or $40,000 that would be required for a loan without it.
Why Mortgage Insurance (MI)
Essent MI can help homebuyers buy a home now with as little as 3% down and start building equity faster, rather than waiting to save 20% down. Check out our free online tool, EssentIQ®, to see the opportunity cost of waiting to save 20% down vs. buying now.
There are a number of ways you can pay your MI premiums. Essent offers borrower-paid MI (BPMI) standard and deferred monthly plans, as well as a single-premium option. Lender-paid MI (LPMI) plans are also available. Read our PMI Q&As to learn more.
Read How To Remove PMI to learn more.
Refer to Sections 10.0 and 11.0 of the Essent Client Services Guide for information regarding cancellation of MI coverage and refunds of premium depending on the Premium/Product Plan selected and Source of Premium Payment.