09/25/2026
Do you need 20% down to buy a home? 🏡
You may not. But if you buy with a conventional loan and put down less than 20%, your lender may require private mortgage insurance, or PMI. 💰
➡ Here’s the plain-English version: PMI protects the lender if a borrower stops making payments. You pay for it, and it may be included in your monthly mortgage payment. It adds to your cost, but it can also make buying possible without waiting to save a 20% down payment. ⌛
And PMI may not last for the life of the loan. For many conventional mortgages, you can request cancellation when your loan balance reaches 80% of the home’s original value, provided you meet the requirements. It generally ends automatically when the balance is scheduled to reach 78%, if your payments are current. FHA loans follow different mortgage insurance rules.
The useful question isn’t just “Can I avoid PMI?” It’s “What would my full monthly payment look like with different down payments?” Ask your lender to show you the numbers side by side.
Would you rather buy sooner with a smaller down payment, or save longer to lower your monthly cost?