Built for American Buyers PMI, 30-year fixed, FHA/VA loans, and DTI ratios.

Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% of the home's purchase price. It protects the lender if you default. PMI typically costs 0.3%–1.5% of the loan amount per year and is automatically canceled once you reach 22% equity (or you can request cancellation at 20%).

Conventional loans typically require at least 3%–5% down. FHA loans allow as little as 3.5% down, and VA loans (for eligible veterans) can require 0% down. Putting 20% down eliminates PMI entirely and may get you a better rate.

FHA loans are backed by the Federal Housing Administration and designed for first-time buyers or those with lower credit scores. You need a minimum 3.5% down payment and a credit score of at least 580 (500–579 requires 10% down). FHA loans require both upfront (1.75%) and annual MIP.

A 30-year fixed has lower monthly payments but you pay more total interest. A 15-year fixed has higher payments but builds equity faster and saves 50%+ in lifetime interest. The right choice depends on your budget and how long you plan to stay in the home.

Your Debt-to-Income ratio compares your monthly debt payments to your gross monthly income. Lenders use two types: front-end DTI (housing costs only, max 28%) and back-end DTI (all debts, max 36% conventional, 43% for Qualified Mortgages). Lower DTI means better rates and terms.