What are the rates for private mortgage insurance?


Quick Answer

Private mortgage insurance rates vary by lender and consumers, according to Bankrate. On average, borrowers in the United States can expect to pay 0.3 percent to 1.5 percent per year of the original loan amount, as of 2015.

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Full Answer

Private mortgage insurance provides protection for lenders who extend financing to borrowers who stop making payments on their loan, explains Zillow. Many lenders require private mortgage insurance if the borrower’s down payment is less than 20 percent of the original loan amount. The rates on private mortgage insurance depend upon the amount of the down payment and the borrower’s credit score. The lower a borrower’s credit score and down payments, the more they can expect to pay in private mortgage insurance premiums, reports Zillow.

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