Mortgage CalculatorWhat Is PMI on a Mortgage and How to Remove It
Private mortgage insurance (PMI) protects the lender if you borrow more than 80% of the home's value. It's usually added to your monthly payment.
When you pay PMI
Most conventional loans require PMI when your down payment is less than 20%. The cost is typically a percentage of the loan amount each year, and it depends on your credit score and down payment.
How to get rid of it
Under federal law, your lender must cancel PMI automatically when your balance reaches 78% of the original home value, if you're current on payments. You can ask to cancel it earlier at 80% of the original value, or when the home's current value supports it. Keep records of your payments and any appraisal you use.