what is PMI?

Private Mortgage Insurance is money paid to insure the lender against loss due to foreclosure or loan default. Mortgage Insurance is required on conventional loans with less than a 20 percent down payment. FHA mortgage insurance requires a payment of 1.75 percent of the loan amount to be paid at closing, as well as an annual fee of the loan amount added to each monthly payment.Feel free to email me for other questions at jpotter@stearns.com or call to schedule an appointment to be pre-approved.

Watch the video or scroll below the video for the written explanation. http://raleighhomeloans.org/tag/pmi/

Oops wrong link! This is the correct one: http://raleighhomeloans.org/2013/03/16/pmi-a-simple-explanation/