Private mortgage insurance protects the lender, not you — and it is the one line on your mortgage statement you can actively get rid of. This calculator estimates the monthly cost and pins the exact month you can request cancellation, which servicers will not remind you about.
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PMI typically runs 0.5%–1.5% of the loan amount per year, billed monthly — roughly $150 to $450 a month on a $360,000 loan. The rate rises as your loan-to-value goes up and as your credit score goes down.
Two thresholds matter. At 80% loan-to-value you may request cancellation in writing; at 78% your servicer must remove it automatically under the Homeowners Protection Act. Requesting at 80% typically saves several months of premiums.
Put 20% down, use a VA loan if you qualify (no mortgage insurance at any LTV), or take a lender-paid PMI structure where the cost is priced into a higher rate. A piggyback second mortgage is a fourth option, though less common now.
Often, yes. Many servicers allow cancellation based on a current appraisal rather than the original purchase price, though most require the loan to be seasoned two to five years. You pay for the appraisal, which is usually far less than a year of premiums.
No, and the difference is significant. Conventional PMI cancels at 78%–80% LTV. FHA's annual MIP lasts the life of the loan when you put less than 10% down — the only way out is refinancing into a conventional loan.
Sources: Homeowners Protection Act of 1998 (12 U.S.C. §4901) — PMI cancellation rules; CFPB — When can I remove private mortgage insurance?; Urban Institute / MBA — typical PMI cost ranges by LTV.
Estimates for educational purposes only — not a loan offer, financial advice, or a commitment to lend. Actual rates, payments, and terms vary by lender and creditworthiness.