Private Mortgage Insurance (PMI)


On a conventional mortgage, when your down payment is less than 20% of the purchase price of the home mortgage, a lender might require you to get Private Mortgage Insurance (PMI) to protect them in case you default on your mortgage. Sometimes you may need to pay up to one year's worth of PMI premiums at closing. If you don’t plan to make a 20% down payment, ask your broker if there are any loans available without a PMI requirement.

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