What Is Private Mortgage Insurance (PMI) in New Hampshire?

🏡 What Is Private Mortgage Insurance (PMI) in New Hampshire?

If you’re buying a home in Plymouth, Campton, Thornton, Rumney, Ashland, or anywhere in Central NH with less than 20% down, you’ll likely have to pay Private Mortgage Insurance, commonly known as PMI.

Here’s exactly what it is and how it works.

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What Is PMI?

PMI is an insurance policy that protects the lender, not the buyer, if the buyer stops making payments.

It allows buyers to purchase a home with a smaller down payment — often as low as 3% to 5%.

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When Do You Have to Pay PMI?

You will typically pay PMI if:

✔ You put less than 20% down

✔ You use a Conventional loan

✔ Your loan-to-value ratio (LTV) is above 80%

FHA loans do not use PMI — they use MIP, which follows different rules.

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How Much Does PMI Cost in NH?

PMI usually costs:

➡️ 0.3%–1.5% of the loan amount per year

For a $350,000 loan, PMI might add:

➡️ $90–$350 per month depending on credit score, down payment, and lender.

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How Do You Get Rid of PMI?

You can remove PMI once your loan reaches 80% LTV, which can happen by:

✔ Paying down your mortgage

✔ Property value increasing

✔ Paying extra toward principal

Some lenders allow early removal with a new appraisal.

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Can You Avoid PMI?

Yes — possible ways include:

✔ Putting 20% down

✔ Using a lender-paid PMI loan

✔ Using certain first-time buyer programs

✔ Using VA loans (no PMI)

✔ Finding special loan options through your lender

Your agent and lender can help compare programs.

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Why PMI Is Common in Central NH

Many buyers in Plymouth, Thornton, and Campton:

Are first-time homeowners

Use low-down-payment loan programs

Purchase homes in competitive markets

Want to secure homes before prices rise

PMI makes homeownership more accessible.

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Q&A

Q: Does PMI ever protect the buyer?

A: No. PMI strictly protects the lender, but it benefits buyers indirectly by allowing low-down-payment purchases.

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Keywords

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Jim Johnson Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com