What is Mortgage Insurance?

Private mortgage insurance (PMI) policies are designed to reimburse a mortgage lender up to a certain amount
if you default on your loan. Most lenders require PMI on loans where the borrower makes a down payment of less
than 20%. Premiums are usually paid monthly or can be financed. With the exception of some government and older
loans, you may be able to drop the mortgage insurance once your equity in the house reaches 20% and you’ve
made timely mortgage payments. The Servicing Lender will have the requirements for canceling the mortgage insurance.

What is Mortgage Insurance?

Private mortgage insurance (PMI) policies are designed to reimburse a mortgage lender up to a certain amount
if you default on your loan. Most lenders require PMI on loans where the borrower makes a down payment of less
than 20%. Premiums are usually paid monthly or can be financed. With the exception of some government and older
loans, you may be able to drop the mortgage insurance once your equity in the house reaches 20% and you’ve
made timely mortgage payments. The Servicing Lender will have the requirements for canceling the mortgage insurance.