3. PMI [Ed. A type of insurance a borrower pays to the lender to protect the lender in case the borrower defaults. It is typically required when putting down less than 20%]. Because this was our first home loan, and it was considered a “jumbo” (I hate that term), they required us to have PMI (despite having put down 20%). During the summer of 2005, we were nearing the magic 80/20 Loan-to-Value ratio, which I believed to be sufficient to have them remove our PMI…
