What is PMI on a mortgage?
Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% on a conventional loan. PMI typically costs 0.3-1.5% of the loan amount annually, paid monthly. It drops off automatically once you reach 22% equity, or you can request removal at 20%.
More context
Private Mortgage Insurance (PMI) is required by lenders when your down payment is less than 20% on a conventional loan. PMI typically costs 0.3-1.5% of the loan amount annually, paid monthly. It drops off automatically once you reach 22% equity, or you can request removal at 20%. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.
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