Episode 52, The Marshall Art of understanding mortgage costs OR principal interest, taxes, oh my!

Private Mortgage Insurance, commonly called PMI, is often required when a borrower puts down less than 20%. And here's an important distinction: homeowners insurance protects you. PMI protects the lender. I know that sounds backwards, but that's how it works. PMI can add hundreds of dollars to monthly housing costs depending on the loan and down payment. The good news is that PMI is often temporary. As equity builds and certain requirements are met, many borrowers can eventually eliminate it, and you should I you can and if interest rates are in your favor.