PMI is Private Mortgage Insurance / Insurer. Privately owned companies that provide insurance for mortgages. There are
different insurances available - standard and special programs for
borrowers. Also they provide rules and guidelines to the lenders regarding the types of loans that are insurable and criteria to determine the eligibility of borrower. PMI’s have stricter qualifying
ratios than FHA for a larger down payment requirement for the loan. However
PMI’s premiums are often lower and they insure loans that have have a larger down payment than FHA. Insurance for mortgages are quite important. It secures
the lender of any money loss if the borrower defaults on the lane. PMI makes money available for emergency cases and
situations. For more information about PMI contact your lender or Tampa Realtor.