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LSDefine

Simple English definitions for legal terms

private mortgage insurance

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A quick definition of private mortgage insurance:

Private mortgage insurance, or PMI, is a type of insurance that protects the lender if the borrower fails to repay the loan. It is usually required by the lender when the borrower has a conventional loan and makes a down payment of less than 20% of the purchase price of the house. Without PMI, the borrower would need to make a larger down payment. PMI allows borrowers to make a smaller down payment, but they will need to pay for the insurance.

A more thorough explanation:

Private mortgage insurance, also known as PMI, is a type of insurance that protects the lender in case the borrower defaults on their mortgage payments. PMI is usually required by the lender when the borrower has a conventional loan with a down payment of less than 20% of the purchase price of the house.

For example, if a borrower wants to buy a house for $200,000 and they only have $10,000 for a down payment, they would need to get a mortgage for $190,000. Since their down payment is less than 20% of the purchase price, the lender would require them to get PMI to protect their investment.

PMI can be paid in different ways, such as a monthly premium or a one-time upfront fee. The cost of PMI varies depending on the size of the down payment, the loan amount, and the borrower's credit score.

It's important to note that PMI only protects the lender, not the borrower. If the borrower defaults on their mortgage, the lender can file a claim with the PMI company to recover their losses. However, the borrower would still be responsible for any remaining debt.

Overall, PMI allows borrowers to buy a home with a smaller down payment, but it comes with an additional cost. It's important for borrowers to understand the terms and costs of PMI before agreeing to it.

private company | Private necessity

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Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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