What Is PMI?

PMI stands for private mortgage insurance. It's a type of insurance on conventional loans that protects the lender when you put down less than 20 percent.

How PMI Works

PMI is typically added to your monthly mortgage payment. The cost varies based on your loan amount, down payment, and credit, but it's usually a fraction of a percent of the loan per year.

How to Remove PMI

On most conventional loans, you can request PMI removal once you reach about 20 percent equity, and it usually falls off automatically at around 22 percent.

PMI vs Waiting to Save 20%

Paying PMI for a while can be worth it if it lets you buy now and start building equity, rather than waiting years while prices and rents rise.

Questions About PMI?

As your REALTOR, I can connect you with lenders who'll show you the numbers with and without PMI. Reach out and we'll compare your options.