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PMI - Private Mortgage Insurance

is a type of mortgage insurance you might be required to pay for if you have a conventional loan.  Like other kinds of mortgage insurance, PMI protects the lender-not you-if you stop making payments on your loan.

After you've bought the home, you can typically request to stop paying PMI once you've reached 20% equity in your home.  PMI is often canceled automatically once  you've reached 22% equity.  PMI only applies to conventional loans..  Other types of loans often include their own types of mortgage insurance.  

If you have a conventional loan and have built up 20% equity in your home, contact your lender and see if they can cancel your mortgage insurance as soon as possible.  If you have a FHA loan or have a mortgage with lender-paid mortgage insurance, you'll need to refinance your loan to ditch those insurance payments for good.