What is PMI (Private Mortgage Insurance)? | REAL-ESTATE-SALESPERSON Exam Prep

Private Mortgage Insurance (PMI) is insurance required on conventional loans when the down payment is less than 20%, protecting the LENDER (not the borrower) against default. PMI can be canceled once the borrower reaches 20% equity, unlike FHA mortgage insurance. 📚 Learn more about PMI (Private Mortgage Insurance) and other key terms for your REAL-ESTATE-SALESPERSON exam at Open Exam Prep. 🎯 This term appears on: REAL-ESTATE-SALESPERSON 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 PMI (Private Mortgage Insurance) definition: https://www.open-exam-prep.com/glossary/pmi-private-mortgage-insurance 💡 Exam Tip: PMI protects the LENDER, not borrower. Required when down payment less than 20% on conventional loans. Can be canceled at 20% equity. FHA uses MIP, not PMI. --- #real-estate #examprep #financeexam #real-estate-salesperson