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What Exactly is PMI?

PMI allows you to finance a home with less than a 20% down payment.

For an extra monthly cost to you, PMI provides default insurance to the lender.

Thinking of saving more to avoid PMI? Accumulating what can be tens or even hundreds of thousands of dollars for a downpayment is a challeng for even the most industrious savers. Delaying a purchase while rates and prices may be more costly than PMI in the long run.

PMI allows you to buy what you want now vs. what could end up being far less of a home after you’ve managed to save a larger down payment later.

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