What is private mortgage insurance, how is it paid, and can it be cancelled?
Mortgage insurance is a type of insurance that helps protect lenders against losses due to foreclosure. This protection is provided by private mortgage insurance companies, such as PMI Mortgage Insurance Co., and allows lenders to accept lower down payments than would normally be allowed. For example: Private mortgage insurance makes it possible for a homebuyer to obtain a mortgage with a down payment as low as 3%. Such mortgages are popular today because potential homebuyers are not always able to accumulate the 20% down payment that is generally required by lenders if a loan is not insured.
