PMI: what it is, when it goes away, and how to kill it early
Private mortgage insurance protects your lender, not you — treat it as temporary.
4 min read · Updated 2026-07-04
When you pay it
On a conventional loan with less than 20% down, lenders require private mortgage insurance — typically 0.3–1.5% of the loan amount annually, paid as part of the monthly mortgage payment.
How to remove it
By law, lenders must automatically cancel PMI when your loan-to-value ratio hits 78% based on the original amortization schedule. You can request cancellation earlier at 80% LTV, and you can accelerate that with extra principal payments or a new appraisal showing your home has appreciated.
FHA is different
FHA loan mortgage insurance (MIP) generally lasts the life of the loan when you put less than 10% down. The only escape is refinancing into a conventional loan once you have 20% equity — often worth doing.
Key takeaways
- PMI ~0.3–1.5% of loan value per year, paid monthly.
- Conventional: auto-cancels at 78% LTV, request removal at 80%.
- FHA MIP usually requires a refinance to remove.
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Educational content only. Not individualized financial, tax, or legal advice.