Mortgage Glossary
Private Mortgage Insurance (PMI)
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Private mortgage insurance (PMI) is insurance conventional lenders require when your down payment is under 20%, protecting the lender against default.
What Private Mortgage Insurance (PMI) means
PMI cost ranges from about 0.15% to 1.5% of the loan annually, based on credit and down payment. It cancels automatically at 78% LTV and can be requested at 80%.
Florida example
A Florida buyer with 10% down pays PMI until the balance reaches 80% of the original value, then asks to cancel. A higher credit score meaningfully lowers the monthly PMI cost.
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