Do you need pmi insurance when refinacing if you did not have before?

Question

Do you need pmi insurance when refinacing if you did not have before?

Answer 1

Ask the new lender.

Answer 2

It depends when you bought and whether you still have the required equity in your home (how much more it is worth than you owe).  If you bought at the peak of the bubble when prices were inflated, and property values have gone down in your area, it is possible that your equity might temporarily shrink too much.  But then the peak of the bubble was also when interest rates were lowest, so unless you fell for a variable rate loan, there might be no logical reason to refi.

Of course if you do a cash out refi, there would be more of a chance of possibly getting hit with PMI.

Answer 3

If your new mortgage is more than 80% of the property value, then most likely the new company will REQUIRE it, so it won't be an option. PMI is something required by the lenders to insure they get the loan paid if you go belly up early in the game. It's nothing you personally need for any reason if they aren't MAKING you purchase it.

Answer 4

If the refi is for more than 80% of the appraised value of the house, yes.

Answer 5

No.  PMI does not benefit you.  However, you may not get the loan if you don't accept it.  Some companies do not require it, you just pay a 1 - 2% more in interest.  Either way, the end payment is usually the same.