PMI (Private Mortgage Insurance)
Insurance that protects the lender when your down payment is under 20%.
Private mortgage insurance (PMI) is an extra monthly charge lenders require when your down payment is less than 20% of the home price. It protects the lender — not you — if you default. PMI typically ends automatically once you build enough equity (often 20–22%), so tracking your balance can let you request its removal and lower your payment.