What is PMI? - Premier Capital Mortgage

Private Mortgage Insurance helps you get the loan

Private Mortgage Insurance, also known as PMI, is a supplemental insurance policy you may be required to obtain in order to get a mortgage loan. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio — the amount of your mortgage loan divided by the value of your home — is greater than 80 percent.

PMI isn't a bad thing — it allows you to make a lower down payment and still qualify for a mortgage loan. In fact without PMI, many of us would not be able to purchase our first home.

How is PMI calculated?

Your PMI premium is fixed based on plan type (loan-to-value ratio, loan type, loan term, etc.) and is not related to your particular credit history or other individual characteristics. PMI typically is typically based on a percentage of your mortgage amount annually. Percentage depends on the loan program.

Nathan Nelson, CA-DOC/NMLS# 247654 Cell. 925.623.1019. Fax. (866).868.9136. E-Mail. NaNelson@SummitFunding.net

Equal Housing Opportunity Lender. Rates and programs subject to change. CA Department of Corporations-916-324-6624. Licensed by CA Dept of Corporations #6072526, CA Dept of Real Estate #10220358, NV Mortgage Lending Division #46, HI Dept of Commerce and Consumer Affairs #1369, MI Dept of Energy, Labor & Economic Growth #FL-0016888 /SR-0016896, OR Division of Finance & Corporate Securities #ML-4896, TX Department of Savings & Mortgage Lending #79566, VA Bureau of Financial Institutions # MC-5238 & MLB -1624, WA Department of Financial Institutions #520-CL-51866, NC Commissioner of Banks #L-148970. The MLS search function is a service of a third party vendor, is offered as a convenience service only, and should not be construed an endorsement of any particular Real Estate company. The accuracy of all information, regardless of source, is not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. All properties are subject to prior sale, change or withdrawal. Use of the MLS search is not to be construed as a commitment to lend.