Buying a home is a realization of a life long dream and for many a symbol of “making it” in life. Since owning property is held in such high esteem many buyers tend to rush into the purchase. With this being the case the home buying industry has developed private mortgage insurance.

The private mortgage insurance, or PMI, serves the purpose of protecting the lender should the buyer default on the mortgage payment. For those buyers looking for a mortgage yet lacking at least 20% of the down payment, a private mortgage insurance is almost always required. This allows buyers with down payments less then that 20% amount to go ahead and buy the home.