# PMI

> Private mortgage insurance: a monthly cost on a conventional loan when you put down less than 20%. It protects the lender if you stop paying, not you.

By David Knorr, founder of BuyWise Home. Last reviewed October 28, 2026. Web page: https://www.buywisehome.com/guide/glossary/pmi

## Why it matters to you

You can ask your lender to remove it once you owe 80% of the home's original value, and it ends on its own at 78%. Extra payments toward the loan get you there sooner.

## Related

- [Step 1: Am I ready to buy?](https://www.buywisehome.com/guide/ready-to-buy)
- [Step 8: Close and move in](https://www.buywisehome.com/guide/close-and-move-in)
- [Down payment](https://www.buywisehome.com/guide/glossary/down-payment): The part of the price you pay in cash. The loan covers the rest.
- [FHA loan](https://www.buywisehome.com/guide/glossary/fha-loan): A government-backed mortgage with down payments from 3.5%.
- [Escrow](https://www.buywisehome.com/guide/glossary/escrow): Money held by a neutral party until the deal closes, and later, your tax and insurance account.

_General information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice._