Is PMI the same as mortgage insurance?

Is PMI the same as mortgage insurance?

Private mortgage insurance, also called PMI, is a type of mortgage insurance you might be required to pay for if you have a conventional loan. Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan. Sep 4, 2020

How can I avoid PMI?

One way to avoid paying PMI is to make a down payment that is equal to at least one-fifth of the purchase price of the home; in mortgage-speak, the mortgage’s loan-to-value (LTV) ratio is 80%. If your new home costs $180,000, for example, you would need to put down at least $36,000 to avoid paying PMI.

Is hurricane insurance mandatory in Florida?

Despite the high risk, Florida doesn’t specifically require hurricane insurance. That’s because hurricane insurance isn’t a separate policy you can purchase. It’s included in a standard property insurance policy.