Welcome back to RealtyMyths word Wizard! Let’s talk about some real estate terms. Title Insurance: Compensates the buyer or lender if title defects, liens or competing claims of ownership on a property arise after closing. Rate Lock: An agreement between a borrower and a lender that allows the borrower to lock in an interest rate on a mortgage for a specified period of time. PMI: Private Mortage Insurance. Insurance that protects a lender against loss if a borrower defaults on a loan. PMI is required for conventional loans that have less than a 20 percent down payment. Equity: The amount of money a buyer pays at closing toward a home purchase. Thank you and stay tuned with RealtyMyths for more information.