PMI (Private Mortgage Insurance)

Last modified March 4, 2022

Protects the lender from loss due to payment default by the borrower. With this insurance, the lender is willing to make a larger loan, which in turn reduces the down payment amount required. This insurance should not be confused with Mortgage Life, Credit Life or Disability Insurance, which are designed to pay off a mortgage in the event of death or disability of the borrower.