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What is Private Mortgage Insurance (PMI)? What is the difference between mortgage insurance and mortgage life insurance?

April 26, 2017Life Insurance mortgage mortgage insurance PMI private mortgage insurance

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What is Private Mortgage Insurance (PMI)? What is the difference between mortgage insurance and mortgage life insurance?

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Mortgage insurance protects the lender if the borrower defaults on the loan. It is typically offered through private companies and referred to as private mortgage insurance or PMI. PMI is typically required on loans with less than 20% down. Government-insured loan programs offer an alternative to PMI. Mortgage life insurance pays off the balance of the mortgage note in the event of the borrower’s death, protecting the family from costly mortgage payments.