BEFORE buying a home, you should be debt-free with 3-6 months of expenses saved for emergencies, and have a down payment saved of at least 10%. A 20% down payment is even better to avoid PMI. Private mortgage insurance, also called PMI, is a type of mortgage insurance you might be required to pay for if you have a conventional loan. Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan. Remember, just because you're a