PMI (Private Mortgage Insurance)

Definition

Insurance protecting the lender when you put down less than 20%, essentially punishing you for not being wealthy enough.

Example Usage

Our PMI costs $150 per month until we reach 20% equity.

Origin

Regulatory requirement implemented by lending institutions

Fun Fact

PMI can add $15,000-$50,000 to the cost of a mortgage over its lifetime.

Source: Mortgage Industry Standards

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