How to get private mortgage insurance

Private Mortgage Insurance (PMI) is like extra money you pay when you buy a home.

[{"selector":"#anim-42a88c9c-35c6-4da7-b603-a5bc83c93768","keyframes":{"transform":["translate3d(-116.34615%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-3d11f43d-f779-4696-becc-288f7c50050c","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}]

If you put down less than 20% of the home's price as a down payment, you usually need PMI.

[{"selector":"#anim-27212577-c086-4fe6-918c-60f1ae66a37f","keyframes":{"transform":["translate3d(-116.34615%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-e70d1096-797b-40a6-9cef-1592198cd899","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}]

It protects the bank if you stop paying your home loan.

[{"selector":"#anim-500d3f5a-a311-4048-a2d9-8b797f1f7269","keyframes":{"transform":["translate3d(-116.34615%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-be040063-b237-4ba2-86ec-2735d7f31723","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}]

You don't choose to get PMI. Your bank adds it to your home loan if you need it.

[{"selector":"#anim-047de75a-45d6-4376-88a0-ed0ba6472eab","keyframes":{"transform":["translate3d(-116.34615%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-51b7c80f-58ce-45d6-962c-7dc0876c131c","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}]

The cost of PMI is added to your monthly mortgage payment.

[{"selector":"#anim-9b0bf87c-d4f8-4740-a39b-d16e97369703","keyframes":{"transform":["translate3d(-116.34615%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-98bda66f-1639-4b09-a7ad-5ebdd6c81067","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}]

Once you own 20% of your home, you can stop paying PMI.

[{"selector":"#anim-fcf2a6c8-433e-4cb8-a048-556a8b043cab","keyframes":{"transform":["translate3d(-116.34615%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-13bbd97b-3214-4195-a110-9b0b9bcd8893","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}]

Talk to your bank to find out when this might happen.

[{"selector":"#anim-3230df3a-d94f-4e3a-b1d7-76b251286e40","keyframes":{"transform":["translate3d(-116.34615%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-8c6042f2-c5b0-47b3-9a6d-be24f9e6c0f4","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}]

Remember, PMI is there to protect the bank, not you.

[{"selector":"#anim-7e86681b-613f-4177-a217-cfe05c1d172a","keyframes":{"transform":["translate3d(-116.34615%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .8, 1)","fill":"both"}] [{"selector":"#anim-63bf3315-1db2-40c3-b8bf-97e5d9e3e9a7","keyframes":{"transform":["rotateZ(-180deg)","rotateZ(0deg)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.2, 0, .5, 1)","fill":"forwards"}]