PMI. It stands for private mortgage insurance. It is not the female condition. Private mortgage insurance is a policy that you pay for but your mortgage lender is the one who will collect any payouts from the insurance. The insurance is to cover the mortgage lender if you default on your loan.
When purchasing a home and putting down less than 20% of the purchase price, mortgage insurance is required. There is a similar program for FHA Loans. You won’t need to pay the PMI forever. Once you have built up equity in the property, and your Equity is 20% of the value, you can then cancel your PMI.
Last year the average buyer made a cash down payment averaging 10%. First time buyers averaged 6%. So even though many buyers did not make the typical 20% down payment they did not refrain from buying their dream home because they needed to pay PMI. The cost on the PMI depends upon your credit score and the amount of the mortgage compared to its value. Expected pay somewhere between $30 and $70 per month for every $100,000 that you borrow as your PMI premium.
For more information please speak with your mortgage representative.