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What is mortgage insurance and when do I need it?

April 26, 2017mortgage insurance

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What is mortgage insurance and when do I need it?

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Mortgage insurance – or PMI [Private Mortgage Insurance] as it is frequently called, is the added amount a borrower is required to pay a lender when they have less than 20% down payment. The mortgage insurance protects the lender against loan default, not the borrower.

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Mortgage insurance – or PMI [Private Mortgage Insurance] as it is frequently called, is the added amount a borrower is required to pay when the loan to value on the property being mortgaged is greater than 80%. The mortgage insurance protects the lender against loan default, not the borrower.