PMI is required when you put down less than 20% on a conventional loan. Once you hit 20% equity in your home, you can request to have it removed. Many people forget to do this and keep paying unnecessary insurance.
Mortgage insurance. I know it's a pesky thing, but with less than 20% down on your new house, you are required to have mortgage insurance from the government. However, once you get to 20% equity on a conventional loan, you can then request to the mortgage company or the servicer to have the mortgage insurance removed. This is because you bought in enough to your new house, you're no longer at risk of missing payments, so you don't need that extra layer of insurance anymore. If you do forget at 20%, it automatically falls off at 22%. But we have things to keep our clients still remembering when they hit notified when they hit 20% equity. That way they know to remove it right away. So don't forget. This is something important to keep in mind on your new home loans.
