Investor Glossary-pmiInvestor Glossary-pmiInvestor Glossary-pmiInvestor Glossary-pmiInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

PMI

The HTML to link to this page
 

PMI, or Private Mortgage Insurance, is insurance that indemnifies a lender against borrower default on a residential mortgage. The borrower pays the PMI insurance premium. In the US, PMI is typically required when the loan-to-value ratio, or LTV, of the loan is greater than 80%. When home equity is lower than 20%, default risk increases, and PMI protects the lender. Many loans do not need PMI for a high LTV. For example, FHA and VA loans are guaranteed by the government and thus never need PMI. It is often up to the borrower to get the PMI policy canceled once home equity reaches 20% to avoid having to continue to pay premiums. PMI regulations and practices vary from state to state and lender to lender. A local mortgage banker or mortgage broker should know PMI specifics that apply to a particular loan.



Rate this PMI definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 401a, real GDP, inflation, command economy, in escrow, cancelled check, ex-dividend, 1035 exchange, required rate of return, Key Rate Duration, stock market close, margin rate, average price per share, current ratio, deferred tax, Zero Cost Collar, stock split, EBITDA, implied volatility, LIBOR, balance sheet, risk management, FTSE, deferred revenue, per diem, labor relations, retained earnings, debt service coverage, phantom income, ex-dividend date, liquidity ratio, FICO score, 1031 exchange, annual return, option premium, covered put, 144a, wholly-owned subsidiary, irrevocable trust, APR, reverse mortgage, minority interest, open position, VIX, quality assurance, class C shares, dividends payable, limit order, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use