Private Mortgage Insurance
(PMI) is a type of insurance that helps protect the mortgage company against
losses due to foreclosure.
Private Mortgage Insurance is provided by private
mortgage insurance companies and allows your bank or other mortgage companies
to accept lower down payments than would normally be allowed (usually
20% of total loan.)
Private mortgage insurance also enables mortgage companies to grant loans
that would otherwise be considered too risky to be purchased by third
party investors like the Federal National Mortgage Association (FNMA)
and the Federal Home Loan Mortgage Corporation (FHLMC).
The ability to
sell loans to these investors is critical to maintaining mortgage market
liquidity, which in turn, allows mortgage companies to continue originating
new loans.
MCD Financial Services, Pittsburgh PA 15217 Toll Free Help : 866-613-36-36 - Email a Question
