Private mortgage insurance is usually required in situations where:

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Private mortgage insurance is usually required when the buyers have a down payment less than 20 percent of the purchase price. This is because a down payment of less than 20 percent presents a higher risk to the lender, as they have less equity in the property and may be more likely to default on the loan. Private mortgage insurance protects the lender in case the borrower defaults on the loan.

Private Mortgage Insurance Is Usually Required in Situations Where