What Is PMI and How Do You Avoid It?
Covers what private mortgage insurance is, why lenders require it below 80% LTV, how much it actually costs, and the three strategies to avoid it — 20% down, piggyback loan, or lender-paid PMI.
What you'll learn
- Why PMI exists and who it protects (the lender, not you)
- How PMI rates vary by credit score and LTV — from 0.3% to 1.5% annually
- The two legal cancellation triggers: 80% LTV (by request) and 78% LTV (automatic)
- The 80-10-10 piggyback loan structure and when it beats paying PMI