Do I Need PMI (Private Mortgage Insurance)?

PMIPrivate Mortgage Insurance, better known as PMI, is a supplemental insurance policy than may be required to obtain in order t get a mortgage loan.   PMI is provided by private, non-government companies such as Radian and is usually required when your loan-to-value ratio, (the amount of the mortgage loan divided by the value of your home) is greater than 80%.

PMI is not a bad thing.  It allows you to make a lower down payment and you can still qualify for a mortgage loan.  If not for PMI, many people would not be able to purchase a home.

This is How PMI is calculated?

A PMI premium is fixed on plan type (loan-to-value ratio, loan type and term), and  isn’t necessarily related to credit history or other characteristics.