SESKStuff Everyone Should Know
SESK: Stuff Everyone Should Know · sesk.info/home-pmi-protects

Private mortgage insurance (PMI) protects which party if you stop paying?

The lender, not you.

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  1. You, the homeowner
  2. Your family and your heirs
  3. Your lender ✔

Why: You pay the PMI premium, but the lender gets the protection. It does not shield you from foreclosure. PMI is usually required on a conventional loan with less than 20 percent down.

Huh, didn't know that: A 20 percent down payment generally avoids PMI on a conventional loan.

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References

Answer: Your lender. You pay the PMI premium, but the lender gets the protection. It does not shield you from foreclosure. PMI is usually required on a conventional loan with less than 20 percent down.

  1. CFPB: What is private mortgage insurance? www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122
    PMI does not protect you and you can still lose your home through foreclosure.
    Checked 2026-10-10.
  2. CFPB: What is homeowner's insurance? www.consumerfinance.gov/ask-cfpb/what-is-homeowners-insurance-why-is-homeowners-insurance-required-en-162
    Homeowner's insurance is not the same as mortgage insurance
    Checked 2026-10-10.

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Test yourself in the game

Home & YardIf you let homeowner's insurance lapse, a lender may buy a policy and bill you. Who might it protect?Home & YardWhat does a mortgage escrow account usually pay on your behalf?Home & YardYou can ask to cancel PMI when your balance is scheduled to hit what share of the home's original value?

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