Private mortgage insurance is a totally separate policy that your lender obtains to protect a percentage of the loan amount, again protecting the lender.
Senior Loan Officer
Sterling National Bank
Private Mortgage Insurance (PMI / MIP) = Protects the lender.
Homeowners Insurance = Protects you / your home.
If you have any specific questions regarding the two please don't hesitate contacting me directly via phone or email.
Direct: (201) 957-6768
Licensed by New York Department of Financial Services
Member of NAMB - The Association of Mortgage Professionals
Member of New York Real Estate Investors Association
Jenny Noble | http://www.olynorthwest.com
Have a great day;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit Repair
Making home ownership more than a dream...
Retired Mortgage Banker
On the other hand, home owners insurance is also required by bank to cover the property in regards to the property itself. Home owner insurance is also optional once the loan is paid off.
Superior Realty Broker
2008 Ave Y
Brooklyn, NY 11235
See My Listings: http://diana.postlets.com
Superior Realty: http://www.superiorrealtyny.com/index.htm
Where as PMI can be eliminated once the property equity has increased by 20 to 25 % in most cases. Thanks Diana Superior Realty Service 917 992 7239.
Homeowners insurance protects you from financial loss caused by an event covered by the policy. Private mortgage insurance protects the lender from financial loss for the portion of your loan that is above 80% loan to value ratio of the original loan amount should you default on your loan payments.
Licensed Real Estate Associate Broker
450 7th Avenue Suite 1501
New York, NY 10123