Real Estate & Housing

PMI (Private Mortgage Insurance)

Insurance required on conventional mortgages when the down payment is less than 20% of the home's value.

PMI protects the lender, not the borrower, in case of default, and is typically added to the monthly mortgage payment. It can usually be removed once the loan balance drops to 80% of the home's original value, either automatically or by request, depending on the loan terms and lender policy.

Related terms in Real Estate & Housing

Related Articles