What Is MI?

Posted on April 17, 2020

What are you paying for when you make your monthly mortgage payment?

A lot of new homeowners don’t realize that your mortgage payment is actually paying for more than just your mortgage loan. Your actual payment is the sum of PITI:

P = Principal
I = Interest
T= Taxes
I = Insurance

In fact, the insurance portion of your monthly payment actually consists of TWO TYPES of insurance. HOMEOWNER’S Insurance and MORTGAGE Insurance.

Homeowner’s Insurance: Homeowner’s insurance is chosen by the homeowner, allowing you to shop around for quotes to get the best deal for you. Homeowner’s insurance protects the home and its contents from fire, theft, and disasters depending on the extent of your policy coverage.

Mortgage Insurance: Protects your lender against default of the loan and is REQUIRED for any loan with a down payment of less than 20%. Mortgage insurance is actually what allows homeowners to get a home loan with less than 20% down payment, opening the door to homeownership for many individuals.

In the case of Conventional loans Mortgage Insurance will automatically be dropped from your monthly mortgage payment once 20% equity is reached. However, for some loan programs such as the Federal Housing Assistance program, Mortgage Insurance lasts the life of the loan unless the homeowner chooses to refinance into a different loan type.

I’d love to talk more about what a mortgage payment would look like for you and the best strategies for becoming a homeowner NOW! Book a call today! 👉

Justice Roberts Loan Officer

Justice Roberts

Branch Manager
NMLS# 1269831
206-408-1241
Email Me
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Over the last ten years my family and I have struggled moving from one place to another never staying long anywhere. It was a nightmare changing schools, forwarding mail, packing. Team Justice helped us get the home we've always wanted they helped us put down roots. We are happy to have worked and continue to work with them they go above and beyond. Even helping us refinance. Made buying a home enjoyable.

Viola H.

Justice did a great job with me. Actually better then great. I consider him my life long mortgae man. I highly recommend him and his team. They went above and beyond what they had to do and closed my loan so smoothly and seamlessly and in a very fast time.

Mark D. | Tacoma, WA

The timing of needs and the communication was the best I've ever experienced..bar none! The ease in which documents were submitted and signing of others is phenomenal. I would highly recommend them to anyone I meet..but only if you want exceptional service.

Joseph W. | Tacoma, WA

Justice and his team were an integral part of our home buying process. They made it so easy and explained everything in great detail what we needed to purchase our first home. I would highly recommend this team to anyone. So personable and answered all my questions on the spot with accurate information. Thank you so much!!

Dominique B.

Justice and Jessie where absolutely great to work with, very professional, timely, and on it, I will always do my home lending with them. They made sure to check in with us at least once a week through out the process that lasted over 4 months, not once did I feel like they got tired of working with us or anything. They always have such a great attitude and always wanting to help!

Wascar Carpio

It’s been a pleasure to work with Justice and his team. If you are wanting constant communication through your loan process, immediate response to your questions via email or text, professionalism, and someone to trust as you make a big decision such as buying a home, look no further than Justice and his team. You all have been wonderful to work, thank you again!!

Maria S. | Edmonds, WA

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Note: “Loan approval and rate is dependent upon applicant’s credit, collateral, financial history and program availability at time of origination. Rates and terms are subject to change without notice. This is not a loan commitment or guarantee of any kind. 1265 Corona Pointe Court, Suite 301, Corona, CA 92879. ©2019 Paramount Residential Mortgage Group, Inc. (NMLS ID 75243) has the following Licenses: CA Department of Business Oversight, Residential Mortgage Lending Act License#4131268 and Finance Lenders Law License #603D903, AZ Mortgage Banker License #910387, Georgia Residential Mortgage Licensee #32807, IL Residential Mortgage Licensee #MB.6760962, Kansas-Licensed Mortgage Company, #MC.0025196, MA Mortgage Lender License #ML75243, ME Supervised Lender License #SLM12384, MS Department of Bank and Consumer Finance, NV Mortgage Broker License#3693, License by the NH Banking Department 17393-MB, License by the NJ Banking Department and Insurance, OH Mortgage Broker Act Certificate #MB.804171.000, OR Lending License #ML -4437 Dept. of Banking in the Common Wealth of PA#37894, RI Licensed Lender #20112799LL, and is also approved to lend in: AL, AK, AR, CT, DE, DC, FL, HI, ID, IA, KY, LA, MD, MI, MN, MO, MT, NE, NM, NC, ND, OK, OR, SC, SD, TN, TX, UT, VA, VT, WA, WV, WI. Governed by the CO Department of Real Estate.www.nmlsconsumeraccess.org (12/17/19).” Powered By Loan Officer X.

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