What Is Private Mortgage Insurance (PMI), and How Can You Avoid It?

PMI: What Every Homebuyer Should Know Buying a home is exciting, but there’s one extra cost that surprises many first-time buyers: Private Mortgage Insurance (PMI). If you’re planning to put less than 20% down on a conventional loan, PMI is almost guaranteed to be part of the picture. Here’s the truth—PMI doesn’t protect you as the homeowner. It protects the lender in case you stop making payments. But understanding how it works, how much it costs, and how to get rid of it as quickly as possib