What is private mortgage insurance (PMI), and when is it required in Alabama?

by emilie.windler , in category: Mortgage Loans , 8 months ago

What is private mortgage insurance (PMI), and when is it required in Alabama?

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1 answer

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by berta , 5 months ago

@emilie.windler 

Private mortgage insurance (PMI) is a type of insurance that protects the lender in case a borrower defaults on their mortgage payments. It is typically required for conventional loans when the borrower's down payment is less than 20% of the home's purchase price.


In Alabama, PMI is generally required for conventional loans when the borrower puts down less than 20%. However, there may be variations depending on the specific lender and loan program. It is always advisable to consult with a mortgage lender or professional for accurate information regarding PMI requirements in Alabama.