Private Mortgage Insurance (PMI) Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Private Mortgage Insurance (PMI), written in plain English, along with examples of how it is used.

What is Private Mortgage Insurance (PMI)?

It refers to that insurance company with whom the mortgage lender is attached. If the borrower defaults the repayments, the PMI safeguards and protects the mortagage lenders by the way of compansation.