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What is Private Mortgage Insurance?

PMI or MI also known as private mortgage insurance, is an insurance required on all FHA mortgage loans (regardless of down payment amount) and Conventional loans (whenever the borrower(s) come in with less than 20% down payment). Mortgage insurance was created to help insure the lender so that in the case of default, the lender gets paid by the mortgage insurance provider. For more information on Private Mortgage Insurance and the approval process in Chula Vista, San Diego, Kearny Mesa, or the whole State of California, fill out the contacts form on the right.

There is an option for lender paid mortgage insurance or borrower paid mortgage insurance with Conventional loans. What this means is that either the borrower(s) can pay the mortgage insurance on a monthly basis(borrower paid) or it absorbed within the rate as is the case with lender paid mortgage insurance. Generally speaking, lender paid mortgage insurance carries a higher rate due to the mortgage insurance being included within the rate. In many cases however, the total mortgage payment comes up lower with the lender paid mortgage insurance option on Conventional loans. There are also options to pre-pay a portion of the mortgage insurance, to reduce the monthly premium.

In short, the goal is to refinance to remove mortgage insurance as soon as the 20% equity requirement is met.

Getting started is easy. We offer very competitive rates, have great service, and always close on time.

Best Mortgage companies in Chula Vista

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Andre Enriques
License # NMLS 220937
DRE # 01713544

Contact Us

Andre Enriques Mortgage Banker - VA Loan Expert, a dba of Anchor Funding Inc

Chula Vista Office
Phone: (619) 323-2066
Cell (619) 208-6499
891 Kuhn Drive, Suite #204
Chula Vista, CA 91914

San Diego Office
Phone: (619) 208-6499
6336 Greenwich Dr, Suite A
San Diego, CA 92122

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Equal Housing Lender

NOT ALL APPLICANTS QUALIFY. First Priority Home Loans is a DBA of Anchor Funding, Inc. is licensed by The
California Bureau of Real Estate #01276087. FHA Non-supervised lender #00257-0000-5
NMLS #1626581 & #236419
NMLS Consumer Access
Loans made or arranged pursuant to the California Department of Financial Protection and Innovation
California Finance Lenders Law license number 603 L293