Private Mortgage Insurance (PMI)
PMI is normally required when a borrower's down payment or equity is less than 20 percent of the loan value. Not all lenders will require PMI, but those that follow the Fannie Mae and Freddie Mac guidelines for home loan approval will require PMI.
The mortgage insurance is usually escrowed into the mortgage payment, and when a borrower reaches 20 percent equity, mortgage insurance is not required.
PMI is the equivalent of FHA or VA insurance on government mortgage loans.
(See Mortgage Insurance.)
By Diane Tuman
- Flag content
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.Close
- Content flagged
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.
- We're Sorry
- This service is temporarily unavailable. Please come back later and try again.