Understanding PMI
Private Mortgage Insurance (PMI) is a payment that is made to a private mortgage insurance company, on behalf of the lender. PMI is required on all loans that do not have at least 20% down payment, with the exclusion of our educator mortgage loans.
PMI is an insurance to protect the lender in the event of default, as the loan does not have enough equity. If you have a conventional loan, then PMI can be dropped at 78% LTV, or loan-to-value.
