PMI: what it is and how to drop it

Credit & Approval

Private mortgage insurance (PMI) protects the lender — not you — when you put less than 20% down on a conventional loan. It's added to your monthly payment, and the good news is it doesn't last forever.

How much and why

PMI cost depends on your down payment and credit. It exists so you can buy with less than 20% down instead of waiting years to save more.

How to remove conventional PMI

Request cancellation once your balance reaches about 80% of the original value.
It typically falls off automatically at 78%.
Rising home values or extra principal payments can get you there faster — sometimes a new appraisal helps.

FHA is different: FHA mortgage insurance (MIP) often stays for the life of the loan. Refinancing into a conventional loan once you have equity is the usual way to remove it — we'll run that math with you.

Educational content only — not financial advice or a commitment to lend. Programs, rates, and guidelines vary and change; talk to a Stateside expert about your specific situation. NMLS #2567704.

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