Private mortgage insurance policies were created to reimburse a lender for the losses incurred when a borrower defaults on their mortgage and the house isn’t worth enough to repay the loan. Most lenders require PMI when a borrower makes a down payment of less than 20%. Provided the account is in good standing, you can cancel most policies when you reach 20-25% equity in the home. Occasionally an appraisal will be required in order to remove the PMI.
Viewed 348 Times 0 Comments Date : 07.10.2008
Was this answer helpful ? Yes (0) / No (0)