PMI, or Private Mortgage Insurance, is typically required when your down payment is less than 20%. It protects the lender—not you—if you stop making payments.

PMI can cost between 0.3%–1.5% of your loan annually, added to your monthly mortgage bill.

💡 How to avoid or eliminate PMI:

• Put down at least 20% when buying.

• Opt for lender-paid PMI, which may be built into a slightly higher interest rate.

• Request PMI removal once you reach 20% equity.

• Consider a piggyback loan (80-10-10) if you’re close to 20%.