Private Mortgage Insurance (PMI)
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
Private mortgage insurance (PMI) is insurance conventional lenders require when your down payment is under 20%, protecting the lender against default.
What Private Mortgage Insurance (PMI) means
PMI cost ranges from about 0.15% to 1.5% of the loan annually, based on credit and down payment. It cancels automatically at 78% LTV and can be requested at 80%.
Florida example
A Florida buyer with 10% down pays PMI until the balance reaches 80% of the original value, then asks to cancel. A higher credit score meaningfully lowers the monthly PMI cost.
What PMI is
Private mortgage insurance, or PMI, is required on conventional loans when you put less than 20% down. It protects the lender if you stop paying.
PMI adds a monthly cost, but it lets you buy sooner with a smaller down payment.
How to remove it
PMI can drop off once you reach 20% equity through payments or rising value. That lowers your payment for good.
We track your path to canceling PMI. Reach out and we will show when you can drop it.
Related program: Learn more →