PMI is a small monthly fee added to Conventional loans when you put down less than 20%. It protects the lender, but it also helps buyers purchase a home with a smaller down payment.
PMI makes homeownership more accessible. It allows buyers to:
- Put less than 20% down
- Keep more savings in the bank
- Qualify for a Conventional loan sooner
Without PMI, most buyers would need a full 20% down payment.
PMI does not last forever.
It typically drops off automatically once you reach 20–22% equity.
You can sometimes remove it earlier if:
- Your home value increases
- You make extra payments
- You meet lender/investor guidelines
I’ll walk you through your options so you know exactly when PMI can be removed.
PMI cost depends on:
- Credit score
- Loan amount
- Down payment
- Loan type
I’ll calculate your exact PMI amount and compare loan options so you can choose the best fit.
- PMI (Conventional): Can fall off once you reach enough equity
- MIP (FHA): Typically lasts for the life of the loan unless you put 10% down
Many buyers choose the FHA option now and refinance into a Conventional loan later to remove mortgage insurance.
PMI isn’t a bad thing — it’s simply a tool that helps buyers become homeowners with a smaller down payment. It’s temporary, affordable, and often helps you get into a home sooner.