PMI (Private Mortgage Insurance)
Insurance a lender requires when your mortgage down payment is under 20%, protecting the lender if you default.
What does pmi mean?
PMI is typically required while your loan-to-value is above 80% and usually costs 0.3%–1.5% of the loan per year. It protects the lender, not you, and generally drops off automatically once you reach 22% equity.
Put it to use
Mortgage Calculator with PMI Use this calculator to determine your total monthly mortgage payment including and estimated amount for Private Mortgage Insurance (PMI). Combination Mortgage Calculator Use this calculator to compare one mortgage with combination financing that consist of a first and second mortgage.
Related terms
All glossary terms