PMI Explained

Private Mortgage Insurance:
What It Costs & How to Cancel It

PMI protects your lender — but you pay for it. Learn exactly what PMI costs, when it's required, and the three proven ways to get rid of it. For borrowers putting less than 20% down, understanding PMI can save thousands.

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See your options with and without PMI.

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Stop Wasting Money

PMI Is Money Out of Your Pocket That You Can Eliminate

PMI protects your lender, not you. Every month you pay it is money helping someone else's risk. The good news: there are proven ways to get rid of it faster than you think.

$30-$70/mo Cost

PMI runs roughly $30-$70 per month per $100,000 borrowed, depending on credit and down payment.

0.19-1.07% Yearly

Annual premium ranges from 0.19% to 1.07% of your loan amount, based on your profile.

~$12,000 Trap

A $300K loan at 5% down can pay ~$12,000 in PMI before hitting 80% LTV.

80% LTV = Free

Once you hit 80% loan-to-value, request cancellation — and keep the monthly savings.

Happy family with keys in a new home in the living room, mortgage approval and real estate
Your PMI Removal Plan

How We Help You Ditch PMI Fast

Most homeowners overpay PMI for years because they don't know when they're eligible to cancel. We map out the fastest, cheapest path to eliminate it.

1

Calculate Your LTV

We assess your current loan-to-value, including home appreciation, to see if you're already eligible to cancel.

2

Pick the Fastest Exit

Cancellation request, appraisal-based removal, or refinance — we run the numbers to find what saves you the most.

3

Avoid FHA MIP Traps

If you have FHA MIP (often life-of-loan), we show you whether refinancing to conventional is the smarter move.

4

Redirect the Savings

Once PMI is gone, we help you redirect that monthly money toward principal, investments, or what matters most.

Get Your Free PMI Analysis

PMI Complete Guide

Private Mortgage Insurance (PMI) is required on conventional loans when you put down less than 20%. It protects the lender — not you — if you default. PMI typically costs $30-$70 per month per $100,000 borrowed, depending on your credit score and down payment percentage.

PMI Cost by Down Payment & Credit Score

Down Payment 760+ FICO 700-759 680-699 660-679
5% down 0.50% 0.66% 0.87% 1.07%
10% down 0.30% 0.42% 0.58% 0.75%
15% down 0.19% 0.26% 0.37% 0.48%

Annual premium as % of loan amount. Divide by 12 for monthly cost. Rates are approximate and vary by insurer.

Example: $300,000 Loan with 5% Down (760+ FICO)

PMI rate: 0.50% annually. Annual PMI: $300,000 × 0.0050 = $1,500. Monthly PMI: $125/month. That's $125/month providing zero benefit to you — pure insurance for the lender. Over 8 years until you reach 80% LTV: $12,000 in PMI payments.

3 Ways to Get Rid of PMI

1

Automatic Termination

By law, PMI must automatically terminate when your LTV reaches 78% of the original home value. No action needed. This happens on the date you're scheduled to reach 78% based on the original amortization schedule — even if your home has appreciated more.

2

Request Cancellation

You can request PMI cancellation when your LTV hits 80%. You'll need: good payment history, no junior liens, possibly an appraisal. If your home has appreciated, you may reach 80% LTV years earlier than the automatic termination date — saving thousands.

3

Refinance Out of PMI

If home values have risen significantly, refinancing into a new loan at or below 80% LTV eliminates PMI entirely. You might also get a lower rate. Compare the refinance closing costs against your remaining PMI payments to see if it's worth it.

PMI vs FHA MIP — The Critical Difference

Feature PMI (Conventional) MIP (FHA)
Cancellable? Yes — at 80% LTV No — life of loan (if <10% down)
Cost (3.5-5% down) 0.50-1.07% annually 0.55% annually (MIP) + 1.75% upfront (UFMIP)
Upfront Fee None 1.75% of loan ($5,250 on $300k)
Best For Borrowers who can reach 80% LTV within 5-7 years Borrowers with lower credit who need the flexibility

Bottom Line: The cancelability of PMI is its single greatest advantage over FHA MIP. If you can qualify for a conventional loan, even with PMI, it's typically cheaper long-term than FHA because you can eventually stop paying.

PMI FAQs

Is PMI tax deductible?

Can I cancel PMI early if my home value goes up?

Can I avoid PMI without putting 20% down?

Does PMI protect me as the borrower?

Get Your Free Mortgage Analysis — (213) 536-9372