private mortgage insurance

Definition of "private mortgage insurance"
  1. An insurance policy that a borrower might be required by a lender to secure, which provides coverage in case of inability to repay a home loan. This is often applicable when the borrower's equity in the property is less than 20 percent
How to use "private mortgage insurance" in a sentence
  1. The bank required the purchaser to have private mortgage insurance because they only had 10% down payment on the house.
  2. Private mortgage insurance is usually necessary when the homebuyer’s down payment is less than 20% of the home’s purchase price.
  3. To protect their investment, the lender insisted on private mortgage insurance due to the buyer's low equity in the property.

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