What is Private Mortgage Insurance (PMI)?

What is Private Mortgage Insurance (PMI)?

PMI stands for Private Mortgage Insurance. This is insurance to protect the lender when you have a small amount of equity in the property. PMI is typically charged when you put down less than 20% when buying a property. PMI can be removed when your loan-to-value ratio is less than 80%. The lender may also require you to pay PMI for at least 2 years regardless of the loan-to-value ratio. You can remove PMI by pre-paying principal towards your loan balance or by waiting for your property to appreciate.

INPUT DATA > MORTGAGE

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