couple looking at papers

Consider the PMI Impact


Lenders require Private Mortgage Insurance (PMI) when a borrower puts down less than 20% on a home loan. If your principal balance is relatively low and you are thinking about refinancing your mortgage you need to consider whether the new loan will require PMI. (On a $200,000 mortgage, PMI will cost approximately $140 a month.) If that is the case, consider a home equity loan instead. Second mortgages do not impact PMI calculations. As long as the balance of your first mortgage is less than 80% of the appraised value of your home, you won’t have to pay PMI.

Even if you don’t plan to refinance, keep in mind you can petition your lender to cancel PMI when your mortgage balance is less than 80% of the appraisal value; if that is the case, contact your lender today.

Personal - Banking Products and Services

Ready to explore how Sunflower Bank can assist you? Speak to a personal banker at a branch near you, contact a specialist on our Wealth Management team, or find the right financial partner on our Commercial Banking team for your business needs. 

Back to Resource Articles

This article contains general information only. Sunflower Bank is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.