What Is Private Mortgage Insurance (PMI), and How Can You Avoid It?

Why PMI Matters for Homebuyers If you’re preparing to buy a home, you may have already come across the term Private Mortgage Insurance (PMI). For many first-time buyers, PMI feels like a confusing extra fee layered onto an already expensive process. And in some ways, it is. PMI doesn’t protect you as the homeowner—it protects the lender in case you default on your loan. But here’s the reality: PMI is extremely common, and for many buyers, it’s unavoidable at first. The good news? There are str