Private Mortgage Insurance (PMI) is typically required by many lenders when a borrower puts less than 20% down on a home. It protects the lender—not you—if you default on the loan. At most banks, this added insurance is paid monthly by the borrower, increasing your overall payment. At Trustco Bank, PMI is only required on loans with an LTV greater than 89.5%, which can save you hundreds of dollars each month.