Private Mortgage Insurance – PMI
Mortgage insurance required by a lender to protect it against default by individuals who are unable to come up with 20% cash as a down payment for a property purchase.

Private Mortgage Insurance was created to allow individuals who may not have enough cash for a down payment the opportunity to purchase a home. The monthly premium due for a Private Mortgage Insurance policy is determined by the type of loan, the actual dollar amount of the loan, and may be added to the mortgage as a lump sum rather than paid monthly.

In many states, Private Mortgage Insurance can be terminated once the equity built up on the home is 20% or greater. The rules and percentages allowed for this termination vary from state to state and lender to lender – check with your lender for it’s specific details on Private Mortgage Insurance termination.

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We are not mortgage professionals nor do we claim to be. All information on this site is provided for informational purposes only. Individuals should always consult a real estate attorney prior to making any real estate commitments which they may not understand.