Suppose you've just purchase your first home for $290,000. At the time of purchase you could only afford to commit to a down payment of $20,000. In order to make the loan, the lender requires you to obtain private mortgage insurance on their behalf. Suppose you overtime you paid down the principle of the loan to $265,000 and at that point in time you can no longer make any mortgage payments. If the lender where to foreclose on your property and sell it for $200,000, what would the lenders loss of prince will be taking into consideration the protection of mortgage(lets assume that the PMI Ian this case covers the top 20% of the loan)?