PMI, or private mortgage insurance, is required on most conventional loans when the down payment is less than 20 percent. It protects the lender, not the borrower, and increases the monthly payment.
Depending on credit, loan structure, and down payment, PMI can sometimes be minimized or avoided through different strategies. These may include higher down payments, alternative loan structures, or loan programs that do not require PMI, such as VA loans for eligible veterans.
If PMI is part of the loan, it can often be removed once sufficient equity is reached, either through appreciation, principal reduction, or refinancing. I’ll help you understand whether PMI makes sense in your situation and what options are available.
