PMI (Private Mortgage Insurance)

PMI exists because a smaller down payment is a bigger risk for the lender, so they offset that risk with insurance you pay for. It doesn’t protect you if you fall behind, but it does let you buy with less money down, which can be a fair trade if waiting to save 20% would keep you renting for years.

The good news is PMI usually isn’t forever. As you pay down your balance and your home’s value holds or rises, you can often request removal once you reach enough equity, and it may drop off automatically at a set point. I can show you roughly when that might happen for your loan.