---
title: "PMI (Private Mortgage Insurance) — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/pmi/
---

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# PMI (Private Mortgage Insurance)

Also called: private mortgage insurance, mortgage insurance

Insurance on a conventional loan that protects the lender when the borrower has less than the program’s required equity.

PMI is typically required on a conventional loan above the program’s loan-to-value threshold. It is priced from credit and LTV, collected monthly, and protects the lender rather than the borrower.

Unlike FHA’s annual MIP, PMI can usually be removed, either automatically as the balance amortizes down, or on request once the equity threshold is met under the program’s rules, sometimes supported by a new appraisal.

## Put a number on it

This term feeds the calculators below.

- [Mortgage Payment CalculatorEstimate monthly mortgage payments with taxes, insurance, and PMI.](/calculators/mortgage-payment/)
- [Home Affordability CalculatorEstimate what home price fits your income, debts, and expenses.](/calculators/affordability/)

## Related terms

- [MIP (Mortgage Insurance Premium)The mortgage insurance charged on an FHA loan: an upfront premium plus an annual premium collected monthly.](/glossary/mip/)
- [LTV (Loan-to-Value Ratio)The loan amount as a percentage of the property’s value, the main measure of how much equity cushions the loan.](/glossary/loan-to-value/)
- [Down paymentThe share of the purchase price you pay in cash, becoming your starting equity in the property.](/glossary/down-payment/)
- [Conventional loanA mortgage not insured or guaranteed by a government program such as FHA, VA, or USDA.](/glossary/conventional-loan/)

## Go deeper

- [PMI removal: original value vs new appraisal](/blog/pmi-removal-original-value-vs-new-appraisal/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

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