Mortgages & Loans
What is PMI , Private Mortgage Insurance ?
PMI is Private Mortgage insurance that protects mortgage lenders against default on loans by providing a way for mortgage companies to recoup the costs of foreclosure. PMI is usually required if the down payment is less than twenty percent of the selling price. Home buyers pay for the coverage in monthly payments. PMI is usually terminated when the home buyer has built up twenty percent equity in the property.
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