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Should You Pay for Private Mortgage Insurance? Here's When It Could Make Sense

Jun 01, 2020 - Nasdaq

Image source: You may have heard that you should not buy a home until you can put 20% down. To that well-worn piece of advice, we say, "Not so fast." Sometimes, paying private mortgage insurance (PMI) can make sense.  What is PMI? PMI is an insurance policy that protects the mortgage lender if the borrower stops making payments. The reason people are so against it is that PMI protects the lender, but does nothing for the borrower. You generally only need PMI if you're taking out a conventi...