If you’re planning to buy a home but don’t have a large down payment, you may have heard about PMI or Private Mortgage Insurance. PMI can make homeownership possible for many buyers, but it’s important to understand how it works and how it impacts your mortgage. Let’s dive into what PMI is and how it affects your monthly payments so you can make informed decisions when working with a mortgage lender.
Private Mortgage Insurance (PMI) is an insurance policy that protects lenders in case you stop making mortgage payments. It’s typically required if you’re putting down less than 20% of the home’s purchase price. PMI helps lenders feel more secure and allows borrowers to purchase homes without waiting years to save for a large down payment.
As a lender, our goal is to make homeownership accessible while managing financial risk. Borrowers with smaller down payments pose a higher risk of default. PMI acts as a safety net, allowing us to confidently offer competitive mortgage options to more clients.
As a lender, we aim to provide transparency about how PMI impacts your overall mortgage experience:
PMI may feel like an added expense, but it’s a valuable tool for getting you into your dream home sooner. Ready to explore your mortgage options? Contact us today, and let’s work together to find the best path to homeownership for you.
"Hi, my name is Chet Decker. I'm the Executive Vice President at The Mortgage Link, Inc., where we specialize in providing personalized mortgage solutions, fast and customized quotes, competitive rates, and exceptional service with integrity."
For Texas Consumers Only: Consumers wishing to file a complaint against a company regarding the origination and/or servicing of your mortgage loan or a complaint against a residential mortgage loan originator concerning residential mortgage loans on real estate located in Texas should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 north Lamar, suite 201, Austin, Texas 78705. complaint forms and instructions may be obtained from the departments website at www.sml.texas.gov. a toll-free consumer hotline is available at 1-877-276-5550.
The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. a written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. for more information about the recovery fund, please consult the departments website at www.sml.texas.gov.
Standard LSM disclosure: This is not a commitment or offer of credit. All applications must be submitted in writing and are subject to credit approval. Not all borrowers who apply will be approved.
