Private mortgage insurance (PMI) is the extra monthly fee on a conventional loan when you put down less than 20%. It protects the lender, not you. The good news: unlike FHA mortgage insurance, PMI goes away.
How much PMI costs
PMI usually costs about 0.3–1.5% of the loan per year, depending mostly on your credit score and down payment. On a $304,000 loan at 0.7%, that’s about $177 a month.
When PMI goes away
- At 80% loan-to-value: you can ask your lender to cancel it, based on your home’s original value. You usually need a good payment history.
- At 78%: it ends automatically, based on your original payment schedule.
- At the halfway point of the loan (year 15 of a 30-year mortgage), it must end even if you haven’t reached 78%.
PMI removal calculator
See when you can ask to cancel PMI, and how extra payments speed it up.
Automatic cancellation follows your original payment schedule, so extra payments only speed up the date you can request removal. PMI here is a flat estimate; actual rates depend on your credit score and down payment.
Estimates for education only. Rates and costs vary; confirm with a licensed lender.
This calculator gives you a quick estimate. Module 8 of the HomeLooker course includes a PMI tracker you can keep using after closing, so you know when to ask your lender to remove it.
See what’s in the course →$47 one-time · 30-day money-back guarantee
3 ways to get rid of PMI sooner
- Pay extra principal. Even $100 a month can move your removal date up by years.
- Get a new appraisal if your home has gained value. Many lenders will cancel PMI based on the current value once you've owned the home for 2–5 years.
- Refinance once you have 20% equity, but only if the new rate makes sense.
PMI vs. FHA mortgage insurance
FHA loans charge a 1.75% upfront premium plus an annual premium (about 0.55% for most loans). With less than 10% down, it lasts the life of the loan. That's why many buyers with good credit choose conventional loans even when FHA is available.
Educational content only, not financial advice. Calculators start at the Freddie Mac weekly average (7.4% as of October 15, 2026); worked examples use mid-October 2026 rates. Confirm current figures with a licensed lender.
Down payments, the real monthly cost, inspections and closing day, explained simply. You’ll also get occasional emails about buying a home and the course. No spam, unsubscribe anytime.