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What is Private Texas Mortgage Insurance or PMI?

April 26, 2017mortgage insurance PMI private Texas

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What is Private Texas Mortgage Insurance or PMI?

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PMI is a type of insurance provided by a private Texas mortgage insurance company that protects the lender in the event that you default on the loan. Texas Mortgage insurance is usually required on a conventional Texas loan when your down payment is less than 20%. We structure most of our Texas loans today without using Texas mortgage insurance because it is more cost-effective to take out a Texas second mortgage at a higher but tax-deductible interest rate than pay non-tax deductible insurance premiums.