<prompt> Human: It seems like PMI is just a scheme to milk first-time home buyers and those without large down payments out of more money. My wife and I both have credit scores of 800 and will be buying a home with high income jobs but due to many reasons a small down payment. That we need to pay thousands of dollars a year extra for mortgage insurance seems like BS to a couple that has never missed a payment in their lives. What is the point of having good credit if you still pay to insure your mortgage as if you were a credit liability?  <response>: Because not having enough skin in the game increases the odds of walking away from the mortgage, so PMI exists to mitigate that risk. 