 TITLE: How Much Does Private Mortgage Insurance (PMI) Cost? CONTENT: How PMI Works\n-------------\nPMI is an insurance policy that protects lenders from borrowers who miss payments. You'll typically pay PMI if you put down less than 20% when you take out a conventional loan to buy a house. But it's also one of the few ways to get a loan that's not backed by the government if you want to make a low down payment.\nIf your lender requires PMI on your loan, you'll usually pay the premium as part of your monthly mortgage bill. Some lenders may also give you the option of paying the entire amount upfront, or paying some amount upfront and some with your monthly payment.\nLenders may also offer PMI-free conventional mortgages with down payments of less than 20%. These loans could have lender-paid private mortgage insurance (LPMI), however, and you may wind up with a higher interest rate instead.\nWhile PMI will increase your monthly payment, it's not all bad. Unlike mortgage insurance requirements on certain government-back loans, such as the mortgage insurance premium (MIP) on Federal Housing Authority (FHA) loans, you don't have to pay PMI for the lifetime of your loan. It may be automatically canceled by your lender, and there are several ways to proactively get rid of it. More on that below. END