What is PMI?
Private Mortgage Insurance (PMI) is a type of insurance that conventional mortgage lenders require from borrowers who make a down payment of less than 20% on their home. This insurance protects the lender in case the borrower defaults on the loan. PMI is typically added to your monthly mortgage payment and can range from 0.58% to 1.86% of the original loan amount annually. For instance, using NerdWallet’s PMI calculator, if you have a $400,000 mortgage with 10% down you could be paying around $4...
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