What is PMI / MI? And do I have to have it?
Private mortgage insurance is required on conventional loans and Mortgage Insurance is required on FHA loans. The insurance policy insures a lender in case a borrower should default. Private Mortgage Insurance is not required when your loan-to-value is 80% or less. Mortgage Insurance is required on all FHA loans for at least the first 5 years of the loan. Once you reach a 78% loan-to-value and are at least 5 years into the Mortgage you may be able to avoid Mortgage Insurance.