Almega Group of Companies, Financial Planning Consultants, Plano, TX
Phone: 972-964-5100

Almega Mortgage

1800 Preston Park Blvd., Ste 145

Plano, TX  75093

Almega Mortgage

1800 Preston Park Blvd., Ste 145

Plano, TX  75093

How Does Private Mortgage Insurance (PMI) Work?

PMI companies write insurance policies to protect approximately the top 20% of the mortgage against default. This depends on the lender's and investor's requirements, the loan-to-value ratio, and the type of loan program involved. Should a default occur the lender will sell the property to liquidate the debt, and is reimbursed by the PMI company for any remaining amount up to the policy value.