PRIVATE MORTGAGE INSURANCE (PMI) IS INSURANCE REQUIRED ON CONVENTIONAL LOANS WHERE THE LOAN AMOUNT IS GREATER THAN 80% OF THE PROPERTY VALUE OR PURCHASE PRICE

• Borrower-paid mortgage insurance (BPMI) is a pre-determined premium amount added to your monthly mortgage payment
• Lender-paid mortgage insurance (LPMI) allows borrowers to waive the monthly premium amount. The overall monthly payment is typically less than a loan with BPMI, even with a slightly higher interest rate.
• For conventional loans, the PMI may be eliminated once a minimum of 20% equity has been established.