PMI (Private Mortgage Insurance) Insurance coverage for the lender that is paid for by the borrower. The PMI insures a certain portion of the loan in the event of default or foresclosure. Usually the smaller the downpayment the higher the PMI fees. This fee can be paid in several ways - as an upfront fee at the time the loan is made, as a part of your monthly payment or as a combination of these two methods.

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