What is PMI and how do I get rid of it?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
PMI, or private mortgage insurance, is required on conventional loans when you put less than 20% down. It protects the lender, not you, and adds roughly $30 to $70 per month per $100,000 borrowed depending on your credit.
You can drop PMI once you reach 20% equity by requesting cancellation, and it falls off automatically at 22%. Rising Florida home values often get borrowers there faster — a new appraisal showing 20% equity can remove it early. We'll show you the timeline.
How PMI works
PMI protects the lender when you put less than 20% down on a conventional loan. You pay it monthly until you build enough equity. It is not the same as homeowners insurance.
The cost depends on your down payment and credit. More down and higher credit mean a lower premium.
Dropping PMI in Florida
PMI does not last forever. Reach 20% equity and you can request removal. At 22% it drops automatically by law. Rising Florida home values can get you there faster.
We track your equity and tell you when to ask. A new appraisal can sometimes speed things up if your home gained value.