What Is PMI? | LowerMyBills

PMI stands for Private Mortgage Insurance.Lenders usually require borrowers to purchase private mortgage insurance when they are taking out a conventional loan and their down payment is under 20% of the home’s purchase price. Homeowners who are refinancing to a conventional loan and have less than 20% equity also typically need to pay for PMI.

By understanding what PMI is for, how the insurance works, and how much it costs, you’ll be in a solid position to figure out whether you’re willing to pay for it — or if you’d be better off avoiding PMI. This video will inform you what you need to know about private mortgage insurance.