Who has 20% to put down on a home loan? If you live in Massachusetts, only 18% have that down payment. The rest have to pay PMI (private mortgage insurance). To get rid of PMI, you have to reach 20% equity either through payments or a singificant increase in home value. In both cases, you also have to make 12 consecutive payments on time. And on top of that, you have to actually request this. It’s not automatic. PMI can actually be a great thing, because it allows you to buy the house you want with even no money down. With rates being as low as they are, PMI becomes an opportunity, because it insures your investment in the home.