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Mortgage Glossary
Private Mortgage Insurance (PMI)
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans when the down payment is less than 20%. PMI protects the lender if you default. Costs 0.5-1.5% of the loan amount annually. Can be removed once you reach 20% equity.
Related Terms
Loan-to-Value Ratio (LTV)
Down Payment
Mortgage Insurance Premium (MIP)
Equity
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