Finanças · Glossário
What is PMI (Private Mortgage Insurance)?
Definição rápida
Insurance required by lenders when the down payment is less than 20%. Protects the lender, not the borrower.
Explicação completa
PMI (Private Mortgage Insurance) is an insurance premium added to a mortgage when the borrower's down payment is less than 20%. It protects the lender (not the borrower) in case of default. PMI typically costs 0.5–1.5% of the original loan amount annually. Once the borrower reaches 22% equity (the loan balance is 78% of the original home value), they can request PMI removal. By law, PMI must be automatically terminated at 78% LTV. PMI can be avoided entirely with a 20%+ down payment, VA loans (military), or some lender programs. It is distinct from homeowners insurance, which protects the borrower.
Calculadoras relacionadas
Calculators that use or explain PMI.
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Last reviewed: June 15, 2026 • Category: Finanças