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what exactly is PMI?

Profile picture for Jverojoe
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July 17 - Los Angeles
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Profile picture for Ice L.
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Since January 2009

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July 20
Profile picture for yanniraz1
Real Estate Agent
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Mortgage Insurance.
When you borrow more then 80% of the value of the property the bank will charge you a monthly fee of couple of hundereds normally.
This is the PMI, Mortgage insurance.
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July 20
Profile picture for BMFPitt
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Since April 2009

Insurance that pays your bank when you default on your loan to make up for the difference between what you owe and what they can sell the house for.

Banks make you get it if you put less than 20% down because at 20% they (theoretically) shouldn't lose much/any money even if you default (unless you bought in NV, FL or CA in the last 5 years.)
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July 18
Profile picture for CulverCityRealtor
Real Estate Agent
Contributions: 206
PMI stands for Private Mortgage Insurance.
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July 18
Profile picture for sunnyview
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Since January 2009

Private Mortgage Insurance is something that you pay if you have less than 20% down. You can read more here.
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July 17
 

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