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Lynn Said:

What is Private Mortgage Insurance?

We Answered:

It is insurance that reimburses a mortgage lender if the buyer defaults on the loan. This insurance is normally put in place when the loan exceeds 80% of the property value.

Pearl Said:

What is PMI (private mortgage insurance)?

We Answered:

PMI covers the lender, not you. It's insurance for which YOU pay to cover the lender in the event of your default on the mortgage.

Tammy Said:

what is a good place to find info on being a first time home buyer and avoiding private mortgage insurance?

We Answered:

There is no "fixed" number but the guidance is 80%. Borrow less than 80% of the homes value and you won' t need PMI