What is PMI?
PMI stands for Private Mortgage Insurance. This insurance is usually required until the amount of the loan is less than 80% of the property’s value. This can be achieved 3 ways :
- a down payment of 20% of the purchase price
- an increase in property value due to renovations/upgrades
- over time with each payment.
There are some situations where this fee could be waived, so check with your mortgage professional to see if this option is available for your loan type.