Understanding PMI
What private mortgage insurance is and how to remove it
What is PMI?
Private Mortgage Insurance (PMI) is required when you put less than 20% down on a conventional loan. It protects the lender if you default on your mortgage.
PMI protects the lender, not you. You pay for it but receive no direct benefit.
2026 PMI Rate Table
| Down Payment | LTV | Annual Rate |
|---|---|---|
| 3% | 97% | 1.5% |
| 5% | 95% | 1.2% |
| 10% | 90% | 0.8% |
| 15% | 85% | 0.5% |
| 20%+ | ≤80% | No PMI |
Automatic Removal
78% LTV
PMI is automatically canceled when you reach 78% loan-to-value ratio based on the original purchase price.
Request Removal
80% LTV
You can request PMI cancellation at 80% LTV with good payment history and no second liens.
Ways to Avoid or Remove PMI
Put 20% or more down
Make extra principal payments
Request a new appraisal if home value increased
Refinance when you have 20% equity
Consider lender-paid PMI (LPMI)
Look into piggyback loans (80-10-10)
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Based on CFPB Homeowners Protection Act and mortgage industry data 2026