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Private Mortgage Insurance Defined

May 1, 2013 By: Greg Williams

Private Mortgage Insurance Defined

Private Mortgage Insurance, or PMI, is a mandated insurance premium that the home owner pays monthly to protect the lender when the home buyer puts little money down during a purchase transaction. (To avoid PMI one must put down at least 20 percent or do a “piggy back” loan.)

While it allows many to buy a home with as little as five percent down, PMI is not the most well-received insurance type in the market. Simply stated, it offers protection to the lender against non-payment should the buyer default on the loan. Basically, the lender is having the buyer fund the premium for insurance to protect its own interest.

PMI Cost Estimate

While cost varies, PMI typically ranges between one-half to one p... http://insurance-a.ucoz.com/news/property_insurance_plus/2013-06-01-2640

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суббота, 1 июня 2013 г.