Private Mortgage Insurance (PMI)

Understanding Private Mortgage Insurance (PMI) for Ellis County Homebuyers

Congratulations on taking the exciting first steps towards homeownership in Ellis County! As Ellis County's top-rated mortgage lender, The Tattooed Lender is here to guide you through every step of the process, including understanding Private Mortgage Insurance (PMI).

What is PMI?

PMI stands for Private Mortgage Insurance. It's an insurance policy that protects the lender, not the borrower, in case of default on a conventional mortgage loan. Conventional loans typically require a down payment of at least 20% of the home's purchase price. If your down payment is less than 20%, your lender will likely require you to pay PMI.

How Does PMI Work?

PMI is typically added as a monthly premium to your regular mortgage payment. The cost of PMI varies depending on several factors, including your loan amount, down payment percentage, and credit score. Generally, the lower your down payment and credit score, the higher your PMI premium will be.

When Does PMI Go Away?

The good news is that PMI isn't permanent. Once you reach 20% equity in your home, you can usually request PMI cancellation from your lender. This can happen through your home's value appreciating or by making additional principal payments towards your loan.

The Tattooed Lender: Your Ellis County PMI Experts

At The Tattooed Lender, our experienced mortgage specialists can help you navigate the ins and outs of PMI and explore all your financing options. We're committed to finding the best mortgage solution for your unique needs, helping you achieve your dream of homeownership in Ellis County.

Considering a home purchase in Ellis County? Contact The Tattooed Lender today for a free consultation!