Private mortgage insurance applies to borrowers who make a down payment that is less than 20 percent of the selling price of the mortgage. Mortgage lenders often require a borrower to acquire another type of insurance, which is private mortgage insurance. This insurance covers the lender in the unfortunate event that the borrower is not able to repay the loan and the lender is not able to recover costs of the foreclosure and also selling the property.
What Is Private Mortgage Insurance (PMI)?
Posted on February 3, 2016 in