PMI or Private Mortgage Insurance is insurance on your home loan when you have less than 20% equity in that home. The purpose of Private Mortgage Insurance, or PMI, is to protect the investment of the lender. With PMI, the lender can lend with confidence because the risk of loaning funds is minimalized.

There are two types of PMI, Private and Non-Private. Private covers conventional loans and Non-Private covers government loans, such as FHA, VA and RD loans.

Where it is true that PMI may cost you $100’s per month, let’s look at it from a different perspective, a wealth building tool. Owning is always better than renting. Your home will appreciate. Let’s use $400 per month as an appreciation value. If your PMI costs you $95 a month and your home is appreciating at around $400 a month, that’s over $300 per month that you are ahead. If you were renting, that entire amount is going toward paying your landlord’s mortgage instead of your own.

And some may not know that when you hit 90% equity in your home, PMI can be bought out. This could save you hundreds each month! We can show you how refinancing and buying out your PMI can help you to put more dollars toward your principal and pay off your loan faster.

The absolute easiest way to see where you can save on your monthly mortgage is to go to It’s the fastest and easiest way to see all your options. Or, as always, you can call me, Dwayne Stein anytime at 504-207-7600 or at