Plain-English definitions for the terms you'll encounter on your financial journey.
Private Mortgage Insurance is a monthly fee added to your mortgage payment if you put down less than 20% on a home. It protects the bank in case you stop paying your loan, and it usually goes away once you have enough equity in the house.
Insurance that protects the lender if the borrower defaults, usually required if the down payment is less than 20 percent.
An insurance policy required by lenders when a borrower makes a down payment of less than 20 percent of the home's purchase price. It protects the lender in case the borrower defaults on the loan.