1. You carry private mortgage insurance only when you don’t have enough cash to make a 20% down payment for a loan for your Home.

2. Mortgage insurance does not protect you. It protects only the lender

3. It is dependent on your reputation(credit score), down payment and the loan duration

4. It costs between 0.20% to 0.50% of your yearly loan balance

5. The likelihood of Borrowers to fail is very low when they have a significant stake in the property

6. After several years, if your outstanding loan balance drops to 78% of the home’s original value, then your Private mortgage insurance should be cancelled by the lender.

7.The lender arranges the PMI while the private insurance companies provides the services.

8. PMI can help you to qualify for a loan that you may not have been able to qualify for.

9. You may be able to cancel your monthly mortgage insurance premium once you have accumulated a certain amount of equity in your home

10. If you fall behind on your payments, PMI will not protect you and you can lose your home through foreclosure.

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