Smart PMI / PMI Buster

Smart PMI Buster is our most popular way to lower your private mortgage insurance (PMI) payment. By paying a portion of your PMI upfront, you can significantly lower your monthly PMI for as long as you decide to keep your loan. Just like how some people lower their mortgage rate with points, you can do the same with your PMI!

Here’s How Smart PMI Works:

  • Pay 1% of your loan amount upfront to reduce your monthly PMI payment.
  • Enjoy a lower mortgage payment over the life of your loan.
  • Buy down your rate? Why not buy down your mortgage insurance?
  • You can cancel PMI completely when your loan reaches 78% loan-to-value.
  • Smart PMI is available on most of our conventional loans and is our most popular PMI feature.

Talk with a Home Loan Expert Now at (877) 410-6663


Are you going to stay in your home forever? If you’re ready to lock in to today’s low mortgage rates on your dream home, PMI Buster could be right for you. The PMI Buster can completely eliminate your monthly PMI payment so you never have to worry about it.

Here’s How PMI Buster Works:

  • Get a slightly higher rate and you’ll never pay a monthly mortgage insurance payment.
  • We’ll pay your PMI to the mortgage insurance company so you never have to worry about it.
  • Because of the way the mortgage insurance is paid, you’ll maximize your tax deduction*
  • PMI Buster is available on most of our conventional loans.

If you have less than a 20% to put toward your home purchase, or less than 20% equity when refinancing, traditionally you have to pay private mortgage insurance on top of your normal monthly payment.
 

Not everyone has a 20% down payment, so paying PMI is common. Even FHA loans require mortgage insurance. If your mortgage requires PMI, you’ll pay PMI until you refinance or until your Loan-to-Value in your property is 78%.

BankerBroker.com provides options to significantly reduce or eliminate your PMI. If your goal is to get the lowest payment possible, our Smart PMI or PMI Buster options could be right for you.

Check out how Smart PMI, PMI Buster and Traditional PMI compare when you break down the numbers. And keep in mind, all options have fixed rates – no payment surprises here! For more details on each loan, click on the tabs at the top.
If you have questions, call (877) 410-6663 or fill out the form on the right to talk to a Home Loan Expert.

The payment examples listed above include:
  • Traditional PMI: Your monthly payment will consist of Principal, Interest and PMI. Interest rate of 4.5% (5.166% APR).
  • PMI Buster: Your monthly payment will consist of Principal and Interest (PMI is not included). You pay a slightly higher interest rate to have the PMI paid by your lender. Interest rate of 5.375% (5.664% APR).
  • Smart PMI: Your monthly payment will consist of Principal, Interest and a lower PMI payment (PMI is reduced because you pay 1% of your loan amount up front and for that you get a reduced monthly PMI payment). Interest rate of 4.5% (5.012% APR).

This example assumed: A $200,000, 30-year Fixed-Rate Loan; 1.875 points due at closing; closing costs are paid out of pocket; this is your primary residence; 90% LTV; debt to income ratio is less than 30%; and a credit score of 720. With Traditional PMI and Smart PMI, you may be able to cancel your PMI when your principal balance reaches 78% of the original value of your home or when your principal balance reaches 78%. With the PMI Buster, your monthly loan payment will remain the same for the term of your loan. Mortgage rates could change daily. Actual payments will vary based on your individual situation and current rates. Some products may not be available in all states. Some restrictions may apply.


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