Basics Of Private Mortgage Insurance
Basics Of Private Mortgage Insurance Basics of Private Mortgage Insurance (PMI) General conventional loans require 20% of the selling price as a down payment. This is often the largest hurdle for many potential home buyers. In order to make buying a home more affordable, lenders devised a solution to allow for smaller down payments and still minimize their own risk – private mortgage insurance. Borrowers with less than 20% for a down payment may be required to apply for private mortgage insurance. The PMI company then insures the lender, generally for the top 20% of the mortgage, in case of...