PMI Texas Rates, Rules. Mortgage Insurance 90%, 95%, 100% loans

February 28, 2008

Texas PMI (private mortgage insurance) Rates, Rules

PMI is sorta like my uncle Jim’s “Thanksgiving Egg Nog”–Just Say No. However, with the recent credit crunch PMI or mortgage insurance is becoming more common.   Especially in Texas.  

What is PMI? And How do I get my PMI rate? Mortgage insurance protects (insures) the bank’s interest should you default on your home loan.  If you stop paying your mortgage, and it has PMI, the bank gets the money they loaned you.   So it’s a safer loan–for the bank. 

Why should work with us?  What makes us special?  Click here –>  Texas Mortgage Broker

If you live in Texas and want your specifiic PMI rate please click here on the PMI Mortgage Calculator. 

PMI is mortgage insurance and just like regular insurance there are lots of factors involved in calculating the PMI Rate:   Loan to value (LTV), credit score, amount of your down payment to name just a few.

Visit http://www.mylendingplace.com or call 512-996-8194, chances are you may qualify for a loan with out PMI.

The problem with PMI is that it increases your monthly payment.  And it raises your closing costs.  These are just two reasons I’m not a fan of PMI and therefore try to avoid it when possible.

 But if one has lower credit scores and it is required how does one factor the PMI rate?  The short answer is–call me.  512-577-2958.  Let me show you exactly what your PMI rate is because there are several factors that go into any insurance quote:  

If you’d like us to send you a FREE good faith estimate on an 80/15/5 home loan (putting 5% down or getting a 95% loan) or a 80/10/10 mortgage  (putting 10% down) please visit Texas Mortgage Refinance Home Equity Loan Application

Your credit score, debt to income ratios, the Loan to Value (LTV) of your home loan, the lender/bank’s required coverage.    Unless you know all these factors you’re just guessing at a rate. I don’t charge application fees and chances are I can offer you a no PMI loan, even to 100% loan.

What about Lender Paid MI? There are lots of financial gurus (Suzy Orman) who love lender paid PMI.  But frankly, lender-paid PMI is just a psychological ploy for people to don’t like MI.  So the lender “pays it” for you.  Yeah right.

For starters, Lender Paid MI loans have higher rates than regular MI loans.   So yes, on the surface, you don’t technically have PMI, but you are paying the MI in the rate.   

Another reason to avoid lender paid PMI is this:  It never goes away, sorta like uncle Jim’s Egg Nog.   With regular mortgage insurance, it falls off whenever your loan to value hits 80%.  But with lender paid PMI mortgage insurance, it never goes away because it’s built into your rate and your rate will remain until you sell the home, refinance, or pay your home off.

Just say NO to lender paid PMI.

 My suggestion:  Avoid PMI whenever possible.   Work with a Texas mortgage broker like me who has lots of banks to offer you.  Also, as a Texas broker, I have the freedom to offer you a non-PMI loan.   Whereas a retail bank like Countrywide, Wells Fargo often only offer PMI loans or lender paid MI loans since they work for the bank.  Retail Banks often sell loans that benefit them not necessarily the client. 

Also, did you know a loan officer makes less on a No-PMI loan than a loan with PMI?  So this is another reason to work with a broker vs a bank.

Ditto for “in house” builder mortgage companies.  Whatever you do, please don’t ever get a loan from a builder’s “in house” mortgage company.

I know there are lots of things to think about when getting a mortgage, and PMI is one of them.  I try to avoid it whenever possible and I offer no-PMI loans even on 100% loans.   If you would like to see how we might help you with a no-PMI loan please call us at 512-577-2958.  Or Visit http://www.mylendingplace.com

Posted in Texas PMI mortgage insurance