What is PMI???????????????

Question

What is PMI???????????????

Answer 1

Private Mortgage Insurance

Lenders require this if borrowing over 80% of the value of the home. FHA always requires this for a refinance or purchase. This protects the lender & not you, the consumer.

Answer 2

underwriter is correct. FHA loans have MIP which is Mortgage Insurance Premium and it seldom goes away but is reduced over time. It must be on any FHA note even if under 80% for not less than 5 years of a 30 year note but can omitted on a 15 year FHA note  

Answer 3

Private Mortgage Insurance.  It protects the bank, not the borrower, in the case of foreclosure.