Down payment & PMI

The big idea

How much down payment do I need, and when does PMI go away?

Down payment is your cushion.

Sellers read your down payment as your cushion.
With very little down, they wonder whether you could cover it if the appraisal comes in low.

PMI protects your lender.
On a conventional loan, it's usually added under 20% down.
On a home you live in, it ends when your balance is scheduled to hit 78% of original value, if you're current.

See it in an example

Example

A $300,000 home, conventional loan.

10% down ($30,000) → PMI about $80 a month

20% down ($60,000) → usually no PMI

Example only. Your lender gives your real numbers.