Home Buying
What is PMI? How can you avoid it? Why should you?
What is PMI? How can you avoid it? Why should you?
PMI is private mortgage insurance. You can avoid it by coming up with a 20% down payment on a conventional loan or by reaching 20% equity on the home. Avoiding PMI will save you a great deal of money over time because that money will never come back to you. Be patient and wait until you have 20% to lay down on a home before buying. Don’t have the 20% to lay down? Wait, it’s worth it!