What is PMI?

PMI (private mortgage insurance) protects the lender if you default. It’s typically required on Conventional loans when your down payment is less than 20% of the purchase price or appraised value. The cost is usually included in your monthly payment and can sometimes be paid upfront or at closing.

PMI can be removed once you have enough equity (e.g. 20% based on the original value or an appraisal), per your loan terms. FHA loans use a different form of insurance (MIP) with different rules.

When comparing quotes, look at the total monthly payment, which may include PMI. A loan with a slightly lower rate but higher PMI might cost more each month than another offer. Compare full payment and closing costs across lenders.

Enter each quote—including the total monthly payment—into a comparison view so you can see how PMI and other factors affect what you’ll pay.