About PMI Insurance. Generally, if your down payment is less than 20% of the price of the home, you will be required to purchase Private Mortgage Insurance (called PMI or sometimes MI). This protects the lender if you should be unable to pay off the loan.
Federal law requires PMI to be cancelled under certain circumstances, for example when you have paid off a certain percentage of your mortgage or your home’s property value has increased to a certain percentage above the value of the mortgage.
Contact your lender for specific information about the status of your private mortgage insurance.
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