Private Mortgage Insurance or PMI is an insurance premium that protects the lender’s investment in your home purchase. Once you own 20% equity in your home, it’s no longer required. So with a down payment of 20%, you can eliminate paying PMI altogether. This option, and the fact that you can stop paying PMI once you reach a Loan-to-Value ratio of 80% is one of the unique advantages of a conventional loan. FHA loans on the other hand, require that mortgage insurance is paid over the entire length of the loan or many years into paying your loan.