• What You Need to Know About PMI (Private Mortgage Insurance)

    A realtor talking to a young man and woman in the entryway of a new home
    May 16, 2017
    With the high cost of homes in the Bay Area market, private mortgage insurance (PMI) provides the protection lenders need to offer conventional housing loans to many buyers who would otherwise be priced out. If you put less than the traditional 20 percent down payment on a home, you were likely required to carry PMI to help reimburse your lender should you default on your loan. Fortunately, once you have acquired enough equity in your home, you can discontinue making PMI payments. Because it adds a substantial amount to your mortgage payment each month, it makes good financial sense to learn a few basic facts about PMI, and how and when you can cancel it.