Lou Auger, Senior Mortgage Banker

  (763) 390-7250   or   (800) 466-3133 ext. 250

When you put less then 20% down, many conventional mortgages are insured by non-government companies called Private Mortgage Insurance Companies. (Unlike FHA and VA mortgages which are insured by government agencies.)  Private Mortgage Insurance reduces the exposure of the mortgage company making a loan, by insuring the risk for the top 12% to 35% of the home's value.  The benefit to you is getting into the pool of mortgages with the best interest rates.  The interest savings out weights the cost of the Private Mortgage Insurance.  You win with a lower overall cost  The mortgage company wins with less risk.  The Private Mortgage Insurance does the insuring and gets paid for taking that risk.

At Summit Mortgage I am often able to obtain discounts on Private Mortgage Insurance in several ways including choosing the best computerized underwriting program, matching you up with PMI companies that offer discounts and if you have high credit scores, matching you up with PMI companies that give discounts for high credit scores.

I work diligently to get the low PMI rates for my applicants.  The following table illustrates the price range for PMI fees:

Obtaining discounts on Private Mortgage Insurance is just one more way I serve my clients. 
Give me a call so I can help you save money.