What is Private Mortgage Insurance also known as PMI?
Private Mortgage Insurance (PMI) is a type of insurance lenders often require with Conventional Home Loan Purchases when the down payment is less than 20% of the purchase price.
This type of insurance protects the lender in the event the loan defaults. and This is not to be confused with home-owners insurance. Most often an amount is added to your monthly payment for PMI. Most PMI is canceled automatically once your loan-to-value reaches 78%, but can be requested to remove at 80%.