PMI (Private Mortgage Insurance)
PMI is insurance that protects the lender — not you — if you stop paying your mortgage. Lenders typically require it when your down payment is less than 20% of the home price. Once you build roughly 20% equity, you can usually request that PMI be removed.
Example
On a $350,000 loan, PMI at 0.8% per year adds about $233 to your monthly payment.