A special form of insurance primarily on mortgages for single-family loans, allowing the buyer to borrow more by putting down a smaller down-payment is called Private Mortgage Insurance (PMI).

Question

A special form of insurance primarily on mortgages for single-family loans, allowing the buyer to borrow more by putting down a smaller down-payment is called Private Mortgage Insurance (PMI).​

Quizplus · Accepted Answer

Private Mortgage Insurance (PMI) is indeed a type of insurance that allows homebuyers to purchase a home with a smaller down payment, typically less than 20% of the home's purchase price, by protecting the lender against default.

A Special Form of Insurance Primarily on Mortgages for Single-Family