What Is PMI and When Can You Remove It?
Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It typically costs 0.5%–1.5% of the loan amount per year.
PMI Cost by Loan Amount
| Loan Amount | PMI/Month (0.5%) | PMI/Month (1.0%) |
|---|---|---|
| $150,000 | $63 | $125 |
| $200,000 | $83 | $167 |
| $300,000 | $125 | $250 |
| $400,000 | $167 | $333 |
| $500,000 | $208 | $417 |
PMI cancels automatically when you reach 22% equity (by payment history) or you can request removal at 20%.