What is PMI? - Trinity Funding, Inc.

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 amounts to about one-half of one percent of your mortgage amount annually, according to the Mortgage Bankers Association, and the premium payment is usually rolled into your monthly mortgage payment. On a $200,000 mortgage, you may be paying $1,000 per year for PMI.

Peter Ma is licensed under the laws of the State of Texas and by State Law is subject to Regulatory oversight by The Department of Savings and Mortgage Lending, any consumer wishing to file a compliant against Peter Ma should complete, sign, and send a complaint form to The Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint forms and instructions may be downloaded and printed from the Department web site located at www.sml.state.tx.us or obtained from the Department upon request by mail at the address above, by telephone at its toll-free consumer hotline at 1-877-276-5550, by fax at (512)475-1360, or by e-mail at smlinfo@sml,state.tx.us.

The Department maintains the mortgage broker recovery fund to make payments of certain types of judgements against a mortgage broker or loan officer. Not all claims are compensable and a court must order the payment of a claim from the recovery fund before the Department may pay a claim. For more information about the recovery fund, please consult Subchapter F of The Mortgage Broker License Act on the Department's web site referenced above.