A mortgage for less than 80% of the appraised value of the home will not require PMI insurance because they default less often.

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PMI (Private Mortgage Insurance) is typically required for mortgages where the loan amount is more than 80% of the appraised value of the home. This is because lenders see borrowers who put down less than 20% as higher risk and more likely to default on their mortgage payments. Therefore, if a borrower can put down at least 20% of the home’s purchase price, they can avoid paying PMI.

A Mortgage for Less Than 80% of the Appraised Value