Meaning & use
PMI
Last updated
Meanings
abbreviationuncountablefinance
Private mortgage insurance: extra insurance a home buyer with a small down payment pays to protect the lender.
Grammar: Uncountable: the buyer pays PMI.
Patterns
- pay PMI
- PMI on a loan
Because her down payment was small, she had to pay PMI.
You can cancel PMI once you own enough of the home.
PMI raised their monthly payment by sixty dollars.
abbreviationcountablebusiness
Purchasing Managers' Index: a monthly survey-based measure of business activity.
Grammar: Used with the: the manufacturing PMI.
Patterns
- the PMI for something
The manufacturing PMI fell below fifty.
Analysts watch the PMI for signs of a slowdown.
A PMI above fifty means expansion.
Common combinations
- pay PMI
- Buyers pay PMI until equity grows.
- cancel PMI
- You may cancel PMI later.
- manufacturing PMI
- The manufacturing PMI rose.
- PMI reading
- The latest PMI reading was weak.
Commonly confused: PMI or PMS? PMI or PMI?
PMI vs PMS
PMS is a different abbreviation entirely.
PMI vs PMI
PMI also stands for Project Management Institute, so check context.
Practice
A buyer with only a 5 percent down payment is most likely to be asked to pay ______.
Choose one answer.
PMI protects the lender when the down payment is small.
Make it your own
Write a sentence using “PMI”, then check it and compare it with the examples above.