Private mortgage insurance (PMI) is probably going to be part of your home buying journey if you're putting down less than 20% on a home in Fort Mill, Waxhaw, or anywhere in the Charlotte metro area. Let me explain what it is and how to deal with it. PMI protects the lender (not you) if you default on your mortgage. Because you're putting down less than 20%, the lender sees you as higher risk, so they require this insurance. It typically costs 0.5-1% of the loan amount annually, paid monthly. On a $400K loan, that's $167-333 per month – not pocket change when you're trying to afford a home in Ballantyne or Weddington

You can avoid PMI by putting down 20% or more, but that's $80K+ on a $400K house, which most first-time buyers don't have. Some lenders offer "lender-paid PMI" where they pay the PMI premium but charge you a higher interest rate – this can sometimes work out better if you plan to stay in the home long-term. The good news is PMI isn't permanent on conventional loans. Once you have 20% equity (throughpaying down the mortgage or home appreciation), you can request to remove it. When you reach 22% equity, it's automatically removed

In growing markets like Indian Land and Marvin, home appreciation might get you there faster than just making payments. Another option is an 80-10-10 loan structure – you get an 80% first mortgage, a 10% second mortgage, and put 10% down. This avoids PMI entirely, though second mortgages typically have higher rates. For some buyers looking at homes in areas like Pineville, this math works out better than paying PMI. My advice? Don't let PMI prevent you from buying if you're otherwise ready. The cost of waiting years to save a full 20% down payment (rising home prices, continued rent payments) often exceeds the cost of PMI

Focus on getting into homeownership and building equity, then work on removing PMI as quickly as possible.