If you make adown paymentof 20% or more when buying a home, you don’t need to pay for PMI. That’s assuming you take a conventional mortgage rather than an FHA or VA loan — more on that shortly. When you take out a mortgage loan, the lender offers you a loan up to a certain...
Private mortgage insurance (PMI) is basically an insurance that the lender uses as protection in the event that you default on your loan. It’s common for loans with less than a 20% down payment, since those are viewed as a “riskier” investment by the lender. If you are required to ...