Overview
When you modify a deal's down payment percentage, the PMI (Private Mortgage Insurance) factor often needs to change too. Deal Details alerts you with a red indicator when your LTV change affects PMI pricing, ensuring you don't present clients with outdated or incorrect mortgage insurance costs. This prevents embarrassing pricing errors during client presentations.
Before You Start
Requirement | Details |
Existing deal | A deal must already be created with PMI configured |
Current PMI factor | Note your existing PMI factor before making changes |
New LTV target | Know the down payment/LTV you want to change to |
Step-by-Step: Updating PMI After an LTV Change
1. Open the Control Center
Navigate to your existing deal
Click Edit Key Metrics in the Control Center
2. Change the LTV Percentage
Enter your new loan-to-value percentage (e.g., change from 90% to 95%)
The system immediately detects the change
3. Respond to the Red PMI Alert
When the LTV changes, the PMI field turns red with a message: "Your LTV has changed."
Option | When to Use |
Validate/Confirm | Only if you're certain the current PMI factor still applies (rare) |
Clear PMI | Recommended when making significant LTV changes |
⚠️ Important: Different LTV brackets have different PMI pricing. A 90% LTV and 95% LTV will almost always have different factors. Always clear and re-pull PMI when the LTV changes substantially.
4. Re-Pull the PMI Rate
After clearing, the PMI field returns to its empty/ready state
Click to get the new PMI quote
Notice the coverage percentage and factor update automatically
Understanding the PMI Changes
Coverage and Factor Relationship
LTV | Typical Coverage | Factor Example |
90% | 25% | 0.28 |
95% | 30% | 0.38 |
85% | 12% | 0.19 |
Higher LTV means more lender risk, which increases both the coverage percentage required and the PMI factor applied to the loan.
Finishing Up
1. Verify the new PMI factor
Confirm the updated factor displays correctly
Check that the coverage percentage matches the new LTV bracket
2. Review the payment impact
The monthly payment will reflect the new PMI cost
Be prepared to explain the difference to your client
Quick Reference
Change LTV → See Red Alert → Click Clear PMI → Re-Pull PMI Rate → Verify New Factor
Tips for Success
Always clear PMI on significant LTV changes—even a 5% LTV shift typically changes the factor
Watch for the red indicator—it's your safety net against presenting wrong numbers
Note factors before and after—helps you explain pricing differences to clients
Lower LTV means lower PMI—use this when discussing down payment options with buyers
Related Topics
Setting Up a New Deal
Understanding PMI Coverage Options
Presenting Multiple Down Payment Scenarios
Points Analysis and Break-Even Calculations