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What is PMI?

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richosasimohan Joined: 18 Jul 2007 Posts: 38 23.01 Dollars($)	Posted: Thu Jul 19, 2007 2:27 am    Post subject: What is PMI? What is Private Mortgage Insurance please explain in brief?
adonis Joined: 22 Oct 2005 Posts: 1366 Location: ALASKA 124.88 Dollars($)	Posted: Thu Jul 19, 2007 2:36 am    Post subject: Welcome Richo, The PMI or the private mortgage insurance is an insurance policy which every lender would require you to purchase. It is required if you're buying a home with a mortgage loan and can make a down payment less than 20% of your home value. _________________ Procrastination is the enemy of your financial sucess
jameshogg Joined: 20 Dec 2005 Posts: 1003 Location: nevada 125.64 Dollars($)	Posted: Thu Jul 19, 2007 2:48 am    Post subject: RE: what a PMI is Hi Richo, The purpose of a PMI is that, lenders will be able to get back the amount they have offered you as loan in case you default and are unable to pay it off. The insurance coverage will make up for the outstanding balance which you will be unable to pay if you default. The best thing about the PMI is that, in the current financial year, borrowers going for loans with this insurance policy can deduct the premiums on their tax payments. This is something which the government has come up with towards the end of the year 2006. To know more about PMI tax deductions, refer to a previous discussion on this topic. Thanks

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