Loanfactz Definitions

PMI

PMI is Private Mortgage Insurance, also called Mortgage Insurance (MI). PMI is insurance, required by lenders, needed for a * mortgage loan with a low * down payment, usually a down payment less than 20 percent of the price of the home, or in a refinancing, when the amount financed is greater than 80 percent of the appraised value. PMI protects lenders from the risk of * default and * foreclosure. PMI is provided by a private mortgage insurance company, is usually paid by the borrower (you), and is included in the mortgage payment. More about PMI - Private Mortgage Insurance

Glossary For This Page
(In Alphabetical Order)

* Default
Failure to perform a legal obligation; a default includes failure to make the payments on a financial obligation, but may also be a failure to perform some action or service that is non monetary (not relating to money).

* Down payment
Paying a portion of the price of a home up front, usually between 3% to 20%, which is not borrowed.

* Foreclosure
A legal action that terminates (ends) all ownership rights in a home when the homebuyer fails to make the mortgage payments or is otherwise in default (not making the payments) under the terms of the mortgage.

* Mortgage Loan
A mortgage loan is money you borrow from a lender to finance the purchase of real estate, the land, house, and all other buildings.

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