I've read articles about buying out PMI or paying PMI up front but haven't talked to a lender that actually offers this program. A few months ago I was interested in doing a [url=http://www.mortgagefit.com/refinance.html]refinance[/url] on our mortgages and taking some cash out, we originally did an 80/15/5 loan. The 80% was on 30 year fixed and the 15% was on a 15 year fixed, which helped to avoid PMI. I was interested in doing one loan and paying PMI with a 20 year or 25 year fixed loan.
Guess what I'm asking is exactly how does the PMI buyout work? Is the amount based on a percentage of the loan? I assume it also matters what the Loan To Value amount is as well? Does a shorter term lower PMI or does it make it a higher risk loan and actually raise PMI. What lenders offer this type of program?
Thanks for your answers.