Mortgage Basics

Private Mortgage Insurance (PMI)

PMI explained clearly, no confusion attached — the MLM way.

Private Mortgage Insurance, or PMI, applies to conventional loans only. Government loans such as FHA, VA, or USDA have their own version called Mortgage Insurance Premium, or MIP. MIP is calculated differently and follows different rules, yet it ultimately serves the same purpose as PMI, which is helping you buy a home when you do not have or choose not to invest 20% as a down payment. MIP can be more expensive unless you are a first-time homebuyer or have high credit scores.

Kent’s favorite way of describing PMI is simple:

With 3% to 5% down, monthly mortgage insurance premiums are more expensive for obvious reasons.
With 10% down, the monthly fee feels fair to both the borrower and the lender.
With 15% down, the monthly fee becomes almost negligible.
With 20% down, there is no monthly mortgage insurance at all.

These insurance factors are built upon several considerations including loan size, credit score, and down payment. The higher your credit score and the larger your down payment, the more affordable your mortgage insurance will be.

At Mountain Lifestyles Mortgage, we are proud to be associated with the largest mortgage investor in the country. We invite you to compare not only the value of our rates and fees but also our PMI factors, which often save borrowers tens upon tens of dollars per month. It is often the little things that add up, and helping our clients with fair and affordable PMI is something we take real satisfaction in.

Plan your next steps

First Name *

Last Name *

Email *

Home Phone *

Loan Amount *

Property Value *

Loan Type *

Credit Score *

By providing your phone number and/or email and clicking "Submit" you agree to our Terms of Service and Privacy Policy and consent to receive marketing communications from Mountain Lifestyles Mortgage via text, call, or email, including automated messages. To opt out, reply 'STOP' to any text. Message and data rates may apply.