private mortgage insurance


private mortgage insurance
private mortgage insurance n: insurance that a lender may require a borrower to purchase to cover losses in the event of default of a residential loan esp. when the borrower is giving the lender a mortgage on property in which the borrower has less than 20 percent equity

Merriam-Webster’s Dictionary of Law. . 1996.

private mortgage insurance
Insurance that reimburses a mortgage lender if the buyer defaults on the loan and the foreclosure sale price is less than the amount owed the lender (the mortgage plus the costs of the sale). A home buyer who makes less than a 20% down payment may have to purchase private mortgage insurance, commonly referred to as PMI.
Category: Real Estate & Rental Property → Buying a House

Nolo’s Plain-English Law Dictionary. . 2009.

Look at other dictionaries:

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