Quick answer: Private mortgage insurance that may apply when the down payment is below a lender threshold.
Definition
Private mortgage insurance that may apply when the down payment is below a lender threshold.
Why it matters
PMI matters because buyers need to understand the full cash-flow impact of a mortgage before committing to a home.
Related formula
True monthly cost = loan payment + ownership costs + utilities + maintenance reserve
FAQ
What does PMI mean?
Private mortgage insurance that may apply when the down payment is below a lender threshold.
Why does it matter for affordability?
PMI can change the true monthly cost or cash required to buy a home.
Where can I test it?
Use the TrueCost calculator to see how the term affects payment, DTI, or leftover cash.