What Is PMI and Do I Need It?

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What Is PMI and Do I Need It?

The Truth About Private Mortgage Insurance (and How to Make It Work for You)

PMI Sounds Scary—But It Might Be Your Ticket In

If you’ve heard of PMI and thought, “Ugh, one more fee?”—you’re not alone. Private Mortgage Insurance can feel like a mystery charge when you’re already juggling numbers. But here’s the truth: it might actually be the key to getting into your first home sooner—and it’s not forever.Here’s what you need to know in three simple steps:

1. PMI Protects the Lender—Not You Private Mortgage Insurance (PMI)

is required when you put less than 20% down on a conventional loan. It’s there to protect the lender, not the buyer, in case the loan isn’t repaid. So yes, it’s an extra cost—but it also opens the door to homeownership with less money upfront.

2. You’ll Pay PMI Monthly (But It’s Manageable)

PMI is usually rolled into your monthly mortgage payment and based on a percentage of your loan amount—typically 0.3% to 1.5% annually. It’s not a massive amount, but it’s important to factor it into your total monthly housing costs so there are no surprises.

You Can Cancel PMI Once You Hit 20% Equity

The good news? PMI doesn’t last forever. Once you’ve paid down enough of your mortgage to reach 20% equity, you can usually request to have it removed. Some loans even cancel it automatically at that point. So while it’s part of the journey, it’s not a lifelong commitment.

Want Help Navigating PMI or Avoiding It Altogether?

Whether you’re deciding if PMI is worth it or exploring ways to avoid it (like lender-paid options or putting more down), we’ve got your back. At Stairway Mortgage, we make this part of the process crystal clear—so you never feel like you’re paying for something you don’t understand.

📘 Download our Free PMI Guide to see how it works and how to plan for it.
📞 Or [schedule a 15-minute call with Jim’s team] and we’ll walk you through your options, no pressure.

Let’s turn mystery fees into confident decisions.

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