Costs & fees
Private mortgage insurance (PMI)
Also called: PMI
In short
PMI protects the lender when a conventional loan's down payment is small. You pay it, it can usually be removed later, and it isn't the same as FHA MIP.
Private mortgage insurance is required on most conventional loans when the down payment is below a threshold set by the loan's guidelines. It protects the lender against loss, not the borrower, but the borrower pays the premium.
PMI is temporary in a way FHA's mortgage insurance often isn't: as you pay the balance down and equity builds, you can generally request cancellation at one equity level and it must be removed automatically at another. That difference is a key reason to compare conventional and FHA.
The cost of PMI depends on your down payment, credit, and the loan, and it is quoted to you as part of the offer rather than being a fixed figure.
Related
Current as of August 2026.