What is Mortgage Insurance or PMI?
What is Mortgage Insurance or PMI?
Mortgage Insurance is an insurance policy that protects lenders against a borrower defaulting on the mortgage loan for a portion of the loss incurred by the lender. Mortgage Insurance is sometimes termed PMI which stands for Private Mortgage Insurance. Mortgage lenders typically do not want to lend more than 80% of the value of a home as it is too risky long term. Mortgage insurance is used to offset the risk to the lender and allows a borrower to put down less than 20% to purchase a home so it creates a win-win scenario for lender and borrower. If you have questions or would like to get started on a mortgage pre-approval, call 302-703-0727 or you can APPLY ONLINE