It is very much like PMI, or mortgage launders if you financed more than 80% of your homes value. It is an launders to protect the loan. It doesn't help you at all. It is launders for the leander. Basically, you are paying the lender's insurance on your loan. After 5yrs and 22% in equity the launders should come off. If not you should send them a certified letter asking that they remove it based on your loan meeting the requirements.