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Mortgage Insurance (MI)
An insurance policy that is typically required on all mortgage loans with less than 20 percent down.
MI is paid by the borrower with benefits paid to the lender in order to cover the difference between the borrower's down payment and 20 percent of the sales price.
If the borrower defaults on the mortgage, this difference is paid to the lender.
Also called "private mortgage insurance" (PMI).
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