What is private mortgage insurance
Private mortgage insurance, commonly referred to as PMI, is a specialized type of insurance policy that conventional homebuyers are typically required to purchase when making a down payment of less than 20 percent of the home’s purchase price. While the homebuyer is the one who pays the premiums for this coverage, the policy itself does not protect the buyer. Instead, private mortgage insurance is designed strictly to protect the lender against financial loss if the borrower defaults on the loan and the