What is PMI (private mortgage insurance) and is it necessary?
One doesn’t need PMI if they need a loan with 80% LTV. Other than that, homebuyers need to know what PMI (private mortgage insurance) is – this is protection for the lender for up to 20% of the loan amount. If anything goes wrong with the mortgage payments, the lender will receive up to 20% of the loan amount from the insurer and the outstanding balance will be repaid through sale or foreclosure.
