Eli5 why PMI exists.

Question

I don’t understand how making me pay an extra 500$ a month makes me MORE likely to not default on my loan. I live in Southern California and to put 10% down on a house it costs like 170k at least. Anyways I’d love to know why it’s mandatory I pay PMI.

In: 0

Answer 1

You only have to pay PMI if you don’t know which side of the number the dollar sign goes on.