Will I have to pay Private Mortgage Insurance?
Ryan Ward, Mortgage Banker, explain Private Mortgage Insurance.
Private Mortgage Insurance, or PMI as its commonly called, is basically your lenders way of recovering their investment if you are unable to repay the loan. PMI is usually required when the buyers down payment is less than 20%. If the amount of the mortgage is more than 80% of what the home appraises for, there is a high lprobability that you will be required to pay PMI in addition to your principle and interest (P&I) payment.