Private mortgage insurance (PMI), is insurance payable to the Bank. It covers the Bank if the mortgagor is not able to repay the loan, and the Bank is not able to recover the amounts due on the loan after foreclosure and sale of the mortgaged property. The annual cost of mortgage insurance varies according to the amount of the total home value that is financial, the credit score of the insured and the insurer. The annual cost of PMI typically varies between 0.19% and 0.9% of the total loan value, depending on the loan term, loan type and proportion of the total home value that is financed. The cost may be payable up front, or included in the loan.