If you’re buying a home with less than 20% down on a conventional loan, you’ll likely be required to carry private mortgage insurance (PMI). PMI protects the lender — not you — in the event of default. But understanding how PMI works, and which payment structure makes the most sense for your situation, can help you manage costs and make a smarter financing decision.

This guide covers how PMI is calculated, the four main ways to pay for it, and how to cancel it once you’ve built enough equity. If you’re buying or refinancing a home in Washington State, I can help you compare options for your specific scenario.
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