Mortgage insurance protects the investor or noteholder if the borrower defaults on the loan. It lowers the investor’s risk when funding a home loan. In most cases, if you pay at least 20% down on your home, you’re not required to carry mortgage insurance.

If you put down less than 20% on a conventional loan, you may need to carry private mortgage insurance, also known as PMI. Lenders require PMI as protection against default. Homeowners with PMI often have a variety of options for paying the premiums.

Private Mortgage Insurance (PMI) For conventional loans, unless you have 20% equity in your home, a small portion of your monthly payment goes toward paying for PMI, which protects your lender in case a borrower defaults.

If you put down less than 20% on a conventional loan, you may need to carry private mortgage insurance, also known as PMI. Lenders require PMI as protection against default. Homeowners with PMI often have a variety of options for paying the premiums.

Private Mortgage Insurance (PMI) PMI protects the lender against default. It’s generally required when the down payment is less than 20%. It’s usually included as part of the monthly payment, but in some cases you can pay it upfront as a part of closing costs.

It can be called Private Mortgage Insurance (PMI) or Mortgage Insurance Premium (MIP). What is mortgage insurance? Removing PMI. If you’re required to carry PMI, we’ll cancel it automatically on the date your loan-to-value (LTV) ratio is scheduled to reach 78%.

You can review your current insurance coverage information at the site we just mentioned: www.mycoverageinfo.com/mrcooper. Note: The following Mortgagee Clause must appear on your insurance policy. If it’s not there, contact your insurer and let them know.

Private Mortgage Insurance (PMI) PMI protects the lender against default. It’s generally required when the down payment is less than 20%. It’s usually included as part of the monthly payment, but in some cases you can pay it upfront as a part of closing costs.

How much insurance do I need? Depending on the type of insurance, you will need enough to cover the lower of either the replacement cost of the property or the remaining principal balance on your loan.

Private Mortgage Insurance (PMI) For conventional loans, unless you have 20% equity in your home, a small portion of your monthly payment goes toward paying for PMI, which protects your lender in case a borrower defaults.