What Determines the Rate of Private Mortgage Insurance?
There are two main factors used in calculating PMI -- the loan type and the amount of the down payment. The loan type affects how much PMI you need to pay in a given term. For example, the PMI rates will be quite different for a 10 year loan versus a 30 year loan. The down payment determines the loan to value ratio of your home. They will subtract the mortgage from the fair market value of the home and to determine the rate they should charge.
