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.

Mortgage insurance that works for you.

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

Lower Monthly Payments Total monthly LPMI payments are typically less than initial total monthly BPMI payments.

Tax Deductibility2

LPMI may be tax deductible.

Qualify for a Higher Mortgage AmountLPMI lowers your total monthly mortgage payment, so you can qualify for higher loan amounts

Higher Interest Rates The cost of LPMI is included in the interest rate, resulting in a higher mortgage interest rate that will never change.

Cannot be Canceled LPMI is effective for the life of the loan and cannot be canceled when the home increases in equity.

Higher Monthly Payments BPMI results in higher payments at fi rst but may be canceled altogether once your loan reaches a certain point provided other conditions met.3

Lower Interest RateInterest rates with BPMI are typically lower than interest rates with LPMI.

May be Removed from Your Loan3

BPMI may be subject to cancellation when the home’s value reaches 20% equity. If certain conditions are met and BPMI is removed from the loan, you will not have to make any more PMI payments for the remainder of your loan. Therefore, your monthly payments will become lower than a comparable loan with LPMI.

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.

1,2,3,4,5,6,7,8 See back side for disclosures.© 2019, Branch Banking and Trust Company. All rights reserved.

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

01081_Rev. 4-2-19

Lender-Paid Mortgage Insurance (LPMI) vs. Borrower-Paid Mortgage Insurance (BPMI)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:

30-Year Fixed Rate Conventional LPMI BPMILPMIDifference

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%

Monthly Principal and Interest Payment

Monthly Mortgage Insurance Payment

Total Monthly Payment6

10-Year Principal Reduction

10-Year Interest Payment

10-Year Mortgage Insurance Payment7

10-Year Total Payment8

Principal Balance after 10 Years

Refund of Premium

PMI Cancellation

$1,073.64

$0.00

$1,073.64

$37,315.87

$91,521.32

$0.00

$128,836.80

$162,684.13

No

N/A - LPMI can only be canceled by refi nancing, selling or paying off lien.

$998.57

$88.33

$1,086.90

$40,464.04

$79,364.42

$9,627.97

$129,456.37

$159,535.96

Yes, under certain PMI plans

BPMI may cancel after the 109th payment is made and this expense may no longer occur. Individual circumstances may vary.3

$75.07

($88.33)

($13.26)

($3,148.17)

$12,156.90

($9,627.97)

($619.57)

$3,148.17

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.