What is PMI?Dec 16 2013
If you’re buying a home, you most likely have come across the term private mortgage insurance, or PMI for short. PMI is a type of insurance paid to mitigate a lender’s potential loss if you default on the mortgage loan. Or in other words, if you stop paying your mortgage, the lender would be able to recover their losses from the PMI company.
But how is PMI derived? And do you have to pay for it? We answer these questions and more in this week’s Mortgage Monday article that discusses everything about PMI.