Is There Any Substantial Benefit to PMI?
Updated 21 days ago (March 6, 2026)
Yes, PMI provides borrowers a solution for affording a home by lowering the down payment lenders will require.
For lenders, PMI lowers the risk of loss when borrowers cannot afford a 20% down payment. Lenders will require you to have PMI so that if you default on your loan, the lender will recoup some of the losses. However, even if you have PMI when you default on your mortgage, you will still likely face foreclosure and a decrease in your credit score.
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