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Private Mortgage Insurance (PMI)

By
Real Estate Broker/Owner with Sylvie Shurgot Real Estate

PMI is extra insurance lenders require borrowers to pay for as long as the loan is for over 80% of the home's value.  Once the borrower has paid the loan down to 78% of the value, PMI is automatically cancelled.  Of course once you hit the 80%, you can request cancellation.  PMI can easily cost you over $100 per month so it's worth checking.