Tagged : PMI

Private Mortgage Insurance provides important protection for mortgage lenders by guaranteeing them against the losses that may occur if the borrower is unable to repay their debt. There are also benefits for the borrowers themselves since they will be able to buy a home with a smaller deposit.

Private Mortgage Insurance has had some bad press, but since 1998 when the Homeowners Protection Act came into effect, many of these problems have been solved. One reason why Private Mortgage Insurance was causing trouble before 1998 was that homeowners were not being kept informed about the payments they were making. Private Mortgage Insurance payments were being taken alongside the mortgage repayments as a hidden cost that was not being properly explained to the…