Yes — if you put less than 20% down on a conventional loan, private mortgage insurance (PMI) is typically required. The good news: unlike FHA mortgage insurance, conventional PMI can usually be removed once you build enough equity.
PMI protects the lender — not you — when equity is thin. You pay it until equity is strong enough.
If your loan is above 80% of the home's value, PMI is almost always required on conforming conventional loans.
Most borrowers pay monthly PMI. Some choose lender-paid PMI baked into a slightly higher rate.
Higher scores usually mean lower PMI factors — another reason score improvements pay off.
Once you reach roughly 20% equity, you can often request cancellation — a major advantage vs. many FHA loans.
PMI is separate from hazard insurance and does not cover your belongings or liability.
You do not always have to put 20% down on day one — but you should understand the trade-offs.
Small file changes can move the monthly number more than you expect.
The right move is the lowest total cost for your timeline — not the lowest down payment alone.
Step 1
We show PITI with PMI vs. a larger down payment with no PMI.
Step 2
If you will refinance or sell soon, temporary PMI may be cheaper than draining cash.
Step 3
We map when automatic and borrower-requested PMI cancellation become realistic.
Step 4
Lock a structure you understand before you shop homes.
Related guides to help you compare options and move toward pre-approval.
2MG Daily
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Usually whenever your down payment (or equity) is below 20% — that is, loan-to-value above 80%.
Often roughly 0.3%–1.5% of the loan amount per year, depending on credit score, LTV, and loan type. Stronger credit usually means lower PMI.
No. FHA mortgage insurance often lasts much longer. Conventional PMI is designed to be cancelable once you reach sufficient equity.
Sometimes with lender-paid PMI (higher rate), piggyback second mortgages, or gift funds that increase your down payment to 20%.
Tell us your price range, down payment, and credit tier — we will show conventional payments with and without PMI.