What is PMI insurance?

PMI or Private Mortgage Insurance insures lenders against losses when they have to foreclose and can only sell their foreclosure properties for less than the loan balances.  Most lenders now require PMI whenever they lend more than 80% of the appraised value of a property.  Some lenders will even lend as much as 95% of appraised value so long as the borrower secures private mortgage insurance.

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