private mortgage insurance

An insurance amount against your mortgage property paid by a private insurance company to a lender in order to prevent loses, in case if you default on your mortgage.

Hi Jenkin,

If your loan to value ratio is more than 80%, then you have to pay the private mortgage insurance. You can have more idea on it from the article on Private mortgage insurance.

Thanks

Hi jenkin,

Welcome to our Community.

Generally borrowers need to purchase a private mortgage insurance for lenders when they having ltv ratio greater than 80%. It secures lender that if the borrower fails to make the payment and become defaulter, then insurance company will pay the lender. The insurance premium will added to the borrowers monthly payment.

But once your ltv is below 80% then you need to pay any pmi premium. You can collect more idea from the article on "When is Private Mortgage Insurance required?".

Thanks