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

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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.