FACTOID # 4: Just 1% of the houses in Nevada were built before 1939.
 
 Home   Encyclopedia   Statistics   States A-Z   Flags   Maps   FAQ   About 
   
 
WHAT'S NEW
 

SEARCH ALL

FACTS & STATISTICS    Advanced view

Search encyclopedia, statistics and forums:

 

 

(* = Graphable)

 

 


Encyclopedia > Lenders mortgage insurance

Lenders Mortgage Insurance (LMI), also known as Private Mortgage Insurance (PMI), is insurance payable to a lender when taking out a mortgage. It is an insurance in the case that the mortgagor is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property. A mortgage (Law French for dead pledge) is a device used to create a lien on real estate by contract. ... Insurance in law and economics, is a system common throughout the world used to alleviate potential financial loss by transferring risk of loss from one entity to another. ... A loan is a type of debt. ...


The LMI may be payable up front, or it may be capitalized onto the loan. This type of insurance is usually only charged if the downpayment is less than 20% of the sales price or appraised value (in other words, the LTV or Loan To Value ratio should be less than 80%). Once the principal reaches 80%, the LMI is no longer required.


  Results from FactBites:
 
What is Mortgage Insurance? (391 words)
Mortgage insurance, also known as private (PMI) or lenders mortgage insurance (LMI), is an insurance policy protecting lenders from the potential default of borrowers.
The policy is purchased by the lender, and the premiums are passed along to borrowers as a fee tacked onto the monthly mortgage payment.
Mortgage insurance is typically required for mortgages for which the down payment is less than 20% of the purchased property's value.
Lenders mortgage insurance - Wikipedia, the free encyclopedia (444 words)
Lenders Mortgage Insurance (LMI), also known as Private Mortgage Insurance (PMI), is insurance payable to a lender when taking out a mortgage.
It is an insurance in the case that the mortgagor is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property.
If a borrower has less than the 20% downpayment needed to avoid a mortgage insurance requirement, they might be able to make use of a second mortgage (sometimes referred to as a "piggy-back loan") to make up the difference.
  More results at FactBites »

 
 

COMMENTARY     


Share your thoughts, questions and commentary here
Your name
Your comments

Want to know more?
Search encyclopedia, statistics and forums:

 


Press Releases |  Feeds | Contact
The Wikipedia article included on this page is licensed under the GFDL.
Images may be subject to relevant owners' copyright.
All other elements are (c) copyright NationMaster.com 2003-5. All Rights Reserved.
Usage implies agreement with terms, 1022, m