<prompt> Human: I keep hearing the PMI is a hedge against homeowners inability to pay off their mortgage, but isnt this covered by interest rates higher rate more money for bank in case you default. So you are basically creating an excuse to make more money. Additionally, it seems like PMI is not mitigated at all if you put less than 20 by having good credithigh income. Income of 250,000 a year and 100,000 in savings...SORRY still have to pay PMI even though there is almost zero risk of default and you have liquid assets the bank could take if you default. Is this just an excuse for big bankers to afford their dom perignon champagne come bonus season?  <response>: It is you buying the lender an insurance policy to pay them in the event that you default.Interest rates are the cost of the loan. PMI is the cost of being high risk aka not being able to put 20 down 