What is PMI and when do I pay it?

Private mortgage insurance protects the lender, not the buyer, and applies on a conventional loan when the down payment falls short of the lender's required equity threshold. It gets added to the monthly mortgage payment as soon as the loan closes and continues until the loan balance reaches the equity level the loan program requires. FHA loans use a similar but separate charge with its own rules, so the exact terms depend on which loan program a buyer's lender uses.