What is PMI or Private Mortgage Insurance and is it Necessary?
Private Mortgage Insurance, or PMI, is a type of insurance that insures the lender in case the buyer defaults on the loan. The lender, or bank, requires PMI when the buyer has a down payment less than 20% of the asking price of the home. Private mortgage insurance has good and bad points, and there are ways to avoid paying it without putting down the required 20%.

Private Mortgage Insurance has it’s Good Points

The good point about PMI is that it lets one buy more of a house without having to save up the required 20%. Many Americans can now reach the American dream with popular 3-5% down programs. These programs are possible because of private mortgage insurance.......................

Full story: allmortgagenews.com