On a conventional loan it is called private mortgage insurance, or PMI, and is usually required when you put down less than the program’s threshold. FHA loans have their own version, MIP. VA loans do not carry monthly mortgage insurance.
Why it matters
It adds to your monthly payment, but it is also what makes buying with a small down payment possible. PMI can usually be removed once you have enough equity; FHA rules are different.
Where you meet it
On your Loan Estimate when you compare down payment options. Our guide on FHA, conventional, VA and USDA loans compares how each handles it.
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