WHAT IS PMI?

Private Mortgage Insurance.

Insurance that is required when your loan exceeds 80% of your homes current value. You will be paying this premium on a monthly basis as your an added risk to the lender with limited equity. I hope this helps...

I is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI

also note that borrower needs to pay 1.5% charges as PMI in case of FHA loan. reason is already specified above

PMI provides a protection to lender against default of high LTV mortgage