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New Orleans Mortgages, What is PMI?

Julie Baudier Dogs, New Orleans MortgagesWhat is PMI?

When can PMI be removed?

PMI is tax deductible.

    PMI stands for Private Mortgage Insurance.  PMI is required when the borrower does not have 20% down payment towards the purchase of a property.  PMI is insurance against default.  If the borrower defaults on the loan the Private Mortgage Insurance Company pays a portion of the loss.

     The lender may allow you to remove PMI after two years of paying successfully on your loan.  The lender usually will order an appraisal to make sure that your loan is 80% loan to value.  After the appraisal is complete the lender can then remove the PMI.

      PMI is tax deductible for borrowers.  MI is fully deductible for tax payers earning up to $100,000 a year and partially deductible for those with incomes between $100,000 and $109,000.

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Eric Bouler Realtor
Gardner Realtors
Metairie - New Orleans, La. USA