Insurance protecting a lender if a mortgage defaults and the foreclosure is less then the outstanding portion of the loan.
Definition from Nolo’s Plain-English Law Dictionary
Insurance that reimburses a mortgage lender if the buyer defaults on the loan and the foreclosure sale price is less than the amount owed the lender (the mortgage plus the costs of the sale). A home buyer who makes less than a 20% down payment may have to purchase private mortgage insurance, commonly referred to as PMI.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:22 pm