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PMI is an abbreviation of a Private Mortgage Insurance, which is a form of insurance that lenders insist on when a homeowner has less than 20 per cent of the total mortgage as a down payment. It safeguards the lender and not the borrower when there is default on the loan. PMI gives buyers the opportunity to own homes at an earlier time without accumulating a huge down payment. It however adds to the monthly mortgage expenses. The monthly, annual and upfront premiums can be made depending on the loan structure. When the loan balance approaches 80 percent of the home value, the PMI may in many cases be eliminated on the loan.
What Is Pmi
What Is Pmi