Insurance you pay when putting less than 20% down on a conventional loan; it protects the lender, not you.
PMI typically costs 0.3–1.5% of the loan per year and drops off automatically at 78% LTV (or on request at 80%). It is the price of buying sooner with less down.
Example: 0.6% PMI on a $360,000 loan ≈ $180/month.
FAQ
What is PMI in simple terms?
PMI typically costs 0.3–1.5% of the loan per year and drops off automatically at 78% LTV (or on request at 80%). It is the price of buying sooner with less down.