Private Mortgage Insurance (PMI)

PMI is insurance you pay for that protects the lender — not you — against default losses on low-down-payment mortgages. It's standard on conventional loans with less than 20% down, and is paid monthly as part of the mortgage payment.

PMI usually drops off automatically once the loan's principal balance reaches 78% of the original home value, or can be requested at 80% LTV with a clean payment history. FHA loans use a similar but separate charge called Mortgage Insurance Premium (MIP).

Why it matters for Milo customers

Milo crypto-backed mortgages don't require PMI even at 100% LTV, because the loan is secured by crypto collateral rather than a small cash down payment. This is a meaningful cost saving versus conventional high-LTV financing.

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