What Is Mortgage Insurance?

Mortgage insurance protects the lender if a borrower stops making payments. It's commonly required when you put down less than 20 percent, and it's a normal part of many low-down-payment loans.

Mortgage Insurance on Conventional Loans

On conventional loans, this is called private mortgage insurance, or PMI. It can usually be removed once you reach about 20 percent equity.

Mortgage Insurance on FHA Loans

FHA loans have their own mortgage insurance premiums, which often stay for the life of the loan unless you refinance into a conventional loan later.

Why It Can Still Be Worth It

While mortgage insurance adds to your monthly cost, it also lets you buy sooner with a smaller down payment, rather than waiting years to save 20 percent.

Have Questions About Your Loan?

As your REALTOR, I can connect you with lenders who'll explain your mortgage insurance options clearly. Reach out and we'll find the best fit.