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

Are you trying to tell me that you can’t find a house in socal that costs less than $1.7M? I’m calling BS on that.