Common AcronymsHomebuying Glossary
PMI
Also known as Private Mortgage Insurance
Insurance required on conventional loans with less than 20% down, protecting the lender if you default.
In plain English
PMI protects the lender — not you — if you default on a conventional loan with less than 20% down. It's added to your monthly payment and can be removed once your equity reaches 20% of the home's value.
Why it matters
PMI is one of the most misunderstood costs in home buying — knowing how it's calculated and how to remove it can save you real money over time.
Where you'll run into it
Guides and tools on TheBuyingPath that cover pmi in context.
Related terms
Not sure where this fits in your process?
Answer a few questions and get a personalized homebuying roadmap — where you are now, what comes next, and which terms like this one matter at each step.
Start your roadmap