What is mortgage insurance?
Private mortgage insurance (PMI) is insurance for your mortgage holder or lender, not for you, the homebuyer. PMI protects your lender in case you are unable to make payments on your mortgage and default on your loan.
Now that you know what PMI is, read more to learn about how it works, how much it costs and when PMI goes away:
How does PMI work?
PMI is required if you have a conventional loan and are unable to put down at least 20% of the home’s purchase price. For example, if you’re buying a home that costs $350,000 and you put down less than $70,000, you may have to make PMI payments.
There are different kinds of PMI. Like other insurance products, there are multiple ways to pay. Here are the types of PMI available for conventional loans:
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