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is the BPMI transferrable?

I'm trying to close a mortgage with 5% down and i'm also buying out the PMI which is about 2.48% of the loan from either Radian, MGIC or Genworth. Now in future if i refinance my loan to a lower interest rate, would the PMI transfer to the new loan? or do i have to get the PMI again.

Thanks
  • August 01 2013 - Dallas
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Answers (4)

You would have to get a new PMI policy. The policy amount is based on credit score and the Loan to Value of the property compared to the loan. When you refinance these numbers will be different, so the new policy is based on the new figures. 
  • August 01 2013
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No.
If there is any chance you will refi or sell within 5yrs..... take a closer look at monthly pmi
  • August 01 2013
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This is an example that borrower's need to be cautious about "buying out" BPMI.  If there is much likelihood of paying off loan (moving/refinancing) in less than 6 yrs. paying monthly would make more sense.

  • August 01 2013
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If you buy a single premium, refundable, policy it works out cheaper than monthly, even if you do sell in less than 5 or 6 years.
  • August 01 2013
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