Why is private mortgage insurance important?

Answer Private mortgage insurance, PMI for short, is a cost lenders add to a mortgage when the borrower cannot put down at least 20 percent of the home's value. PMI makes it easier for people to transitio... Read More »

Top Q&A For: Why is private mortgage insurance important

How to Understand Private Mortgage Insurance?

Home buyers are required to pay private mortgage insurance (PMI) to their lender when the down payment amount is less than 80 percent of the home's value. The idea behind PMI is home buyers who hav... Read More »

Why do I need private mortgage insurance?

Private mortgage insurance, or PMI, allows you to purchase a home with a smaller down payment because lenders are protected against you defaulting. Without PMI, most lenders require a 20 percent do... Read More »

A Private Mortgage Insurance Policy?

Private mortgage insurance is also known as PMI, mortgage insurance and MI. If you're buying a property and making less than a 20 percent down payment, then the lender probably will require a priva... Read More »

How is private mortgage insurance determined?

Private mortgage insurance (PMI) is a type of insurance policy that protects lenders in the event that a borrower defaults on a mortgage. PMI only reimburses the lender and offers no protection for... Read More »