Private Mortgage Insurance [PMI]
Private Mortgage Insurance, also known as PMI, is an insurance that protects the mortgage lender from loss if the buyer defaults on their loan. The borrower pays the premium monthly or with one large upfront payment. A buyer using a conventional loan with less than 20% down are required to have PMI. Once the home loan is the amount is approximately 80% of the homes original value, you may ask the lender to drop the PMI.