Private Mortgage Insurance: Everything You Need to Know
Abstract
Private mortgage insurance, or PMI, is a type of insurance that helps protect lenders in the event that a borrower defaults on their mortgage loan. It's usually required when a borrower puts down less than 20% of the home's purchase price. PMI can be expensive, and for most people it's unnecessary. In this article, we'll explain everything you need to know about PMI, how it works, and how to avoid paying for it. When Do You Need to Carry PMI? Private mortgage insurance is a type of insurance that helps protect lenders in the event that a borrower defaults on their mortgage loan. Do Private Mortgage Insurance Payments Build Equity? No. Your monthly PMI payments do not go into an account that you can eventually tap into. It's insurance for the lender, not for Continued The post Private Mortgage Insurance: Everything You Need to Know appeared first on FastExpert.
