WHAT IS PMI?

This link takes you to an excellent explanation of Private Mortgage Insurance, otherwise called mortgage insurance premium. PMI is required on real estate loans with less than 20% down, in nearly all cases. Statistically, a buyer with less down may be more likely to walk from the mortgage obligation if they have little of their own money invested. To provide loan funds for borrowers with less than 20% down, PMI became the solution. Simply put, it insures the investor that he/she won't lose his/her investment if the borrower defaults. The PMI fee provides no insurance in the borrower's behalf. It is between the lender and the investor. Go to privatemi.com for a complete review of Private Mortgage Insurance.