Monthly costs

PMI (private mortgage insurance)

Also known as: private mortgage insurance, mortgage insurance, conventional PMI

Insurance on many conventional loans when you put less than 20% down; protects the lender, not you.

Private mortgage insurance (PMI) is commonly required on conventional loans when loan-to-value is above 80% (typically less than 20% down, or higher LTV on a refinance). It protects the lender if you default; it does not protect you. In FinanceFlow’s purchase and refinance calculators, PMI applies only to Conventional loans under that LTV rule. FHA, VA, and USDA use different insurance or fee structures and do not use conventional PMI the same way.

See also