Mortgage Insurance That Works for You

Mortgage insurance that works for you.

Private Mortgage Insurance (PMI) makes it possible for you to put down less than 20% on your new home and still get a conventional mortgage. At BB&T, we can work together to ﬁ nd a PMI solution that is right for you.

Lender-Paid Mortgage Insurance (LPMI)1 Borrower-Paid Mortgage Insurance (BPMI)3

Lower Monthly Payments Higher Monthly Payments Total monthly LPMI payments are typically less than BPMI results in higher payments at ﬁ rst but may initial total monthly BPMI payments. be canceled altogether once your loan reaches a certain point provided other conditions met.3 Tax Deductibility2 LPMI may be tax deductible. Lower Interest Rate Interest rates with BPMI are typically lower than Qualify for a Higher Mortgage Amount interest rates with LPMI. LPMI lowers your total monthly mortgage payment, so you can qualify for higher loan amounts May be Removed from Your Loan3 BPMI may be subject to cancellation when the Higher Interest Rates home’s value reaches 20% equity. If certain The cost of LPMI is included in the interest rate, conditions are met and BPMI is removed from resulting in a higher mortgage interest rate that will the loan, you will not have to make any more PMI never change. payments for the remainder of your loan. Therefore, your monthly payments will become lower than a Cannot be Canceled comparable loan with LPMI. LPMI is effective for the life of the loan and cannot be canceled when the home increases in equity. Tax Deductibility2 Starting in 2018, BPMI is tax deductible if you have an adjusted gross income no greater than $100,000.

Talk with a BB&T Home Mortgage professional so you can choose the right PMI option for you.

How do you know which Private Mortgage Insurance (PMI) option is right for you? Compare the two options with the detailed chart below.

Loan Assumptions:

Owner-Occupied Purchase Single Family Residence Original Value: $210,527.00 Original Balance: $200,000.00 Original Loan-to-value: 95% Credit Score: 740 30-Year Fixed Rate with BPMI4: 4.375% with .250% discount points and 4.780% APR, based upon one borrower with debt-to-income ratio <45% 30-Year Fixed Rate with LPMI4: 5.00% with -.275% discount points and 5.062% APR, based upon one borrower with debt-to-income ratio <45% Initial PMI Coverage5: 30%

LPMI 30-Year Fixed Rate Conventional LPMI BPMI Difference

Monthly Principal and Interest Payment $1,073.64 $998.57 $75.07 Monthly Mortgage Insurance Payment $0.00 $88.33 ($88.33) Total Monthly Payment6 $1,073.64 $1,086.90 ($13.26) 10-Year Principal Reduction $37,315.87 $40,464.04 ($3,148.17) 10-Year Interest Payment $91,521.32 $79,364.42 $12,156.90 10-Year Mortgage Insurance Payment7 $0.00 $9,627.97 ($9,627.97) 10-Year Total Payment8 $128,836.80 $129,456.37 ($619.57) Principal Balance after 10 Years $162,684.13 $159,535.96 $3,148.17 Refund of Premium No Yes, under certain PMI plans

PMI Cancellation N/A - LPMI can only be BPMI may cancel after the canceled by reﬁ nancing, 109th payment is made and selling or paying off lien. this expense may no longer occur. Individual circumstances may vary.3

Talk with a BB&T Home Mortgage professional so you can choose the right PMI option for you.

Mortgage products offered through Branch Banking and Trust Company, Member FDIC and Equal Housing Lender. Loans are subject to credit approval. Offer may change without notice. 1 Available products include fi xed rate conventional 30-year and 20-year loans, Home Now 30-year and 20-year loans, and First Time Home Buyer (FTHB) 30-year loan. (BB&T product numbers 101, 104, 111, 153, 154, and 126.) 2 Consult your tax advisor regarding tax deductibility. A Form 1098, Mortgage Interest Statement, will be issued by BB&T as required by law. 3 The mortgage loan servicer must automatically terminate borrower paid private mortgage insurance on the termination date, as long as the borrower is current on payments and continues to use the property securing the loan as his or her primary residence. The termination date is the date on which the principal balance of the mortgage is fi rst scheduled to reach 78% of the original value of the property securing the mortgage, based solely on the amortization schedules and irrespective of the outstanding balance for the mortgage on that date. If the private mortgage insurance is not otherwise canceled or terminated as described above, the mortgage loan servicer will terminate it at the midpoint of the amortization period, as long as the borrower is current on payments. 4 This is a representative example based upon rates and annual percentage rate (APR) that were effective as of April 1, 2019, and origination fees of $985. Rates and fees are based on the terms of the transaction and are subject to change at any time. Rates and pricing may vary and are subject to change at any time without notice. 5 PMI coverage may vary depending upon the loan product selected. 6 This payment example does not include other monthly charges that may apply, such as real estate taxes, homeowners insurance, fl ood insurance, homeowners association dues, condominium fees, or cooperative fees, etc. The total obligation may be higher. 7 Calculation based upon monthly mortgage insurance payment multiplied by the fi rst 109 months. 8 Calculation based upon monthly principal and interest payment multiplied by the fi rst 120 months plus the 10-year mortgage insurance payment. © 2019, Branch Banking and Trust Company. All rights reserved. 01081_Rev. 4-2-19