Private Mortgage Insurance (PMI) is an insurance policy that you pay for that could help you finance your home if you have not saved enoguh for your down payment. This much is true; however, Private Mortgage Insurance does nothing more for you the homeowner, except drain your wallet. First, the insurance policy does not protect you at all. This policy you are paying for only protects the lender from certain losses if you default on the mortgage. Lenders like this; however, Private Mortgage Insurance is expensive and you could be required to keep it for a number of years. This insurance alone could raise your monthly payments by as much as $200.

A simple