Private Mortgage Insurance Private mortgage insurance or also known as PMI is an insurance policy used in conjunction with conventional loans and they protect lenders from the possible risk of default and foreclosure. Buyers who cannot make a significant down payment or choose not to can obtain mortgage financing at affordable rates. If you purchase a new home and want to put down less than 20%, your lender will can minimize its risk by requiring that you buy insurance from a PMI company before … [Read more...]