What is Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is provided by a "private mortgage insurance" company and is designed to protect the lender in case of default. The premium amount varies based on the loan amount, the amount of the down payment, the term of the loan, whether the loan is a fixed rate or an adjustable rate mortgage and your credit score. If PMI is required, your regular monthly mortgage payments will include a PMI premium.
Most banks require their borrowers to purchase PMI if their down payment is less than 20% of the purchase price of the home. At Third Federal, you may qualify for a mortgage without PMI. Contact a Third Federal Customer Service Representative to review your personal situation toll-free at 1-800-THIRDFED (1-800-844-7333).