It can be called Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP). What is mortgage insurance? If you’re required to carry PMI, we’ll cancel it automatically on the date your loan-to-value (LTV) ratio is scheduled to reach 78%.

Private mortgage insurance (PMI) protects your loan’s investor (the entity that owns the loan) in case a borrower defaults. Lenders may require private mortgage insurance if your down payment is less than 20% of the loan amount.

If you put down less than 20% on a conventional loan, you may need to carry private mortgage insurance, also known as PMI. Lenders require PMI as protection against default.

Private mortgage insurance (PMI) protects your loan’s investor (the entity that owns the loan) in case a borrower defaults. Lenders may require private mortgage insurance if your down payment is less than 20% of the loan amount.

Example: If your unpaid principal balance (UPB) is $80,000 but the replacement cost is $120,000, you need to carry a minimum insurance of $80,000 total. Note: There may be exceptions to this for properties in certain states. Your insurance carrier can tell you more about this.

If you put down less than 20% on a conventional loan, you may need to carry private mortgage insurance, also known as PMI. Lenders require PMI as protection against default.

Depending on the type of insurance, you will need enough to cover the lower of either the replacement cost of the property or the remaining principal balance on your loan.

Private Mortgage Insurance (PMI) PMI protects the lender against default. It’s generally required when the down payment is less than 20%. It’s usually included as part of the monthly payment, but in some cases you can pay it upfront as a part of closing costs.

If you are required to carry mortgage insurance, removal of the insurance may occur when the equity in your home reaches a certain percentage. Note: Depending on the type of loan you have, your mortgage insurance may go by different names. It can be called Private Mortga...

I have mortgage insurance. Will being on a Disaster Forbearance Plan affect it? A forbearance plan may extend the number of months you must pay on time to cancel the Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP).