When conventional loans require PMI, how it is priced, and ways to reduce or avoid it. From The 2 Mortgage Guys at Luminate Bank, lending nationwide.
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Yes — if you put less than 20% down on a conventional loan, private mortgage insurance (PMI) is typically required. The good news: unlike FHA mortgage insurance, conventional PMI can usually be removed once you build enough equity.
PMI protects the lender — not you — when equity is thin. You pay it until equity is strong enough.
You do not always have to put 20% down on day one — but you should understand the trade-offs.
Small file changes can move the monthly number more than you expect.
The right move is the lowest total cost for your timeline — not the lowest down payment alone.
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