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Is that true for homeowner's insurance? As far as I know, the 20% rule is for private mortgage insurance (PMI), which pays to the lender if you fail to make you
by jtaillon 7y ago
Is that true for homeowner's insurance? As far as I know, the 20% rule is for private mortgage insurance (PMI), which pays to the lender if you fail to make your payments. Basically an added payment because with a low down-payment, you're seen as an extra risk of default that must be insured separately.
- notinallcases 7y agoSorry, I meant PMI, not homeowner's insurance. The GP said "mortgage insurance" and that's what I was referring to. I absolutely have and was required to obtain homeowner's insurance to get a loan.