Private mortgage insurance (PMI) is a policy that
protects lenders who make loans to individuals who want to buy or
refinance a home, but are unable to come up with the required 20%
down payment.
Private Mortgage Insurance Facts:
PMI plays a valuable role in expanding home ownership.
With PMI, families can purchase homes with as
little as 3-to-5 percent down payment on a home.
Nearly 1 million people a year buy or refinance a
home with PMI.
PMI cost home owners between $20 to $100 per month.
PMI can be canceled, under certain conditions, when
a good payment history is met and 20% or more equity is achieved on
the cost of the home.