If you’re buying in Columbus, Powell, Dublin, Westerville or Lewis Center and putting less than 20% down, someone’s going to drop three letters on you pretty fast: PMI. Most buyers nod politely and secretly think, “I’ll figure that out later.” Let’s make “later” right now so you understand exactly what PMI is, why it exists, and when it actually makes sense for your Central Ohio game plan.

1. What PMI Actually Is (And Who It Protects)

PMI = Private Mortgage Insurance.

Here’s the key thing:

• It protects the lender, not you.

• It kicks in when you put less than 20% down on most conventional loans.

From the bank’s perspective in Columbus, Dublin, Westerville, Upper Arlington, New Albany, Lewis Center, or Delaware, smaller down payment = higher risk. PMI is their way of saying, “We’ll still lend you the money, but we want a safety net.”

The upside for you? Without PMI, a lot of buyers would still be renting in Columbus instead of owning.

2. When You’ll See PMI (And When You Won’t)

You’ll typically run into PMI when you:

• Use a conventional loan with less than 20% down

• Are financing a primary home, second home, or investment property

You won’t see PMI when you:

• Put 20% or more down

• Use a VA loan (no PMI, one of the big perks for qualified buyers)

• Use certain special programs or lender-paid structures (we can talk those through when we look at options)

In real life? Buyers all over Columbus, Powell, Dublin, Evans Farm, Westerville, and Delaware are closing every week with 3–10% down and PMI. It’s normal.

3. How PMI Actually Shows Up in Your Monthly Payment

PMI is usually built right into your monthly mortgage payment, along with:

• Principal

• Interest

• Property taxes

• Homeowners insurance

So you don’t get a separate PMI bill—it’s just part of the total.

Is it annoying to pay something that doesn’t directly benefit you? A little.

But here’s the better question:

“Is paying PMI for a few years worth owning sooner in the neighborhood we want—Dublin schools, that Powell cul-de-sac, Evans Farm, or a great Westerville street—versus renting and waiting another 3–5 years to hit 20%?”

Sometimes the answer is yes. Sometimes it’s no. But it should be a decision, not an accident.

4. The Part Nobody Explains: You Don’t Have to Keep PMI Forever

This is where most buyers are fuzzy. PMI is not a life sentence.

With most conventional loans, PMI can come off when you hit around 20% equity, which can happen by:

• Paying your mortgage down over time

• Your home in Columbus, Powell, Dublin, Westerville, Upper Arlington, New Albany, Lewis Center, Delaware, etc. appreciating

• You paying extra toward principal to speed things up

• Refinancing later if rates/equity cooperate

So you might carry PMI for a handful of years, then drop it—and keep the home, the neighborhood, and the appreciation you’ve already built.

5. How We Decide If PMI Is a Smart Trade-Off for You

The real conversation I have with buyers isn’t “PMI good” or “PMI bad.” It’s:

• How much do you have saved today?

• How long would it take to get to 20% down if you wait?

• What’s likely to happen with prices in the areas you want—Columbus, Powell, Dublin, Evans Farm, Westerville, Upper Arlington, New Albany, Lewis Center, Delaware?

• How comfortable are you with the monthly payment that includes PMI vs. sitting out of the market?

Sometimes I’ll say, “Yep, let’s structure this so you avoid PMI.” Other times, the smarter move is: “Let’s use PMI as a bridge so you’re not watching your future house get more expensive from the sidelines.”

If you’re not sure whether PMI is helping you or just irritating you, that’s a sign we should run the numbers together—using real homes, real payments, and your real life, not just a generic calculator.

[Contact Patrick Murphy, REALTOR® — Columbus, Powell & Dublin Expert]