What is PMI? Private Mortgage Insurance Explained

In this video, we will be discussing what PMI is and how it works. PMI, or private mortgage insurance, is a type of insurance that helps protect lenders in the event that a borrower defaults on their mortgage loan. it is typically required by lenders if you do not put 20 percent or more of the home's purchase price down.

The amount a borrower pays for PMI varies depending on the size of their loan, the length of time that they have the mortgage, and how risky their defaulting would be. You can typically choose between two types - single premium or monthly premium insurance. The first is typically paid upfront as part of closing costs, while the second type is added to your monthly mortgage payments.

If you're looking to buy a home and are wondering if you need to purchase PMI, make sure to watch this video! If you enjoy the video, show some love!

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*DISCLAIMER* The contents of this video are for strictly educational and entertainment purposes. This video is not intended to provide financial, accounting, tax, or legal advice. For financial or legal advice consult with financial advisor or lawyer.

[SamMillerSells]

Wayne, Great information and your examples are easy for viewers to follow - Sam

[brianblair]

Good stuff. I always wondered about the particulars. Thanks for the education.

[Bloomyok]

Great info, never knew what it actually was.

[jempski]

Wish I would have known about this before I called the mortgage company and went through them to remove my PMI. It was only $100 total but I wasn't aware of the other options at all.

[OnPointContractors]

I'm a veteran and want to buy a house. Advice?

[davidcloyd]

F that! Why not tell us it’s a scam created after the 08’ crash? Don’t pay that bs.. collect some loot now and put your 20% down or find a relationship w a lender who won’t do that to you. Why not just say that PMI is just another bogus “hidden fee” to milk you for loot?

[WillieTaggett]

I didn't know the guy from Brawny paper towels was so adept at real estate