 TITLE: Do I Need Mortgage Insurance? CONTENT: Do Conventional Mortgage Loans Require Insurance?\n-------------------------------------------------\nConventional mortgages offered by private lenders may require PMI if you put down less than 20% when you buy a home. However, some lenders offer mortgages with lender-paid PMI, which means you won't have to pay for the insurance. Instead, you may have to pay a higher interest rate, which can wind up costing you more money in the long run.\nIf you have to pay for PMI, you may be able to pay the full amount upfront, pay it monthly or use a combination of the two. Monthly payments are the most common option, and your insurance payment will be bundled with your mortgage payment\nYou'll have to continue paying for PMI on your conventional loan until one of the following scenarios occurs:\n*   You reach the date when the loan balance is 80% or less than the home's original value, and you request PMI cancellation.\n*   You request an earlier PMI cancellation because you've made extra payments and the loan balance is 80% or less than the home's original value before the expected date.\n*   The PMI is automatically removed because your loan balance is 78% of the home's original value.\nPaying for PMI upfront means your monthly payment will be lower and you won't need to request a cancelation later, but it will add to your upfront costs as the fee could be equivalent to several years' worth of premiums. An upfront payment could wind up costing you less in the long run than making monthly payments until you build 20% equity in the home, but it depends on the upfront fee and your down payment. END