PMI is required on conventional loans when your down payment is below 20% (LTV above 80%). The rate depends on your LTV and credit score, typically ranging 0.3% to 1.5% of the loan amount annually.
Credit tier
LTV 90-95%
LTV 85-90%
LTV 80-85%
760+ Excellent
0.44%
0.31%
0.19%
700-759 Good
0.68%
0.51%
0.32%
660-699 Fair
1.06%
0.80%
0.54%
620-659 Poor
1.50%
1.15%
0.85%
When PMI automatically ends
Under the Homeowners Protection Act, lenders must automatically cancel PMI when your loan balance reaches 78% of the original home value, as long as you are current on payments. You can request removal yourself once you reach 80% LTV — usually earlier than the automatic date.
How to remove PMI faster
Extra principal payments accelerate reaching 80% LTV. Home value appreciation can also get you there faster — if your home has appreciated significantly, a new appraisal may show you already qualify, even without extra payments. Contact your servicer to request a PMI review once you believe you have reached 80% LTV.
Typically 0.3% to 1.5% of your loan amount annually, divided by 12. On a $370,000 loan at a 0.5% rate, that is about $154/month. Your exact rate depends on your down payment size and credit score.
When can PMI be removed?
You can request removal once your loan balance reaches 80% of the original home value. Lenders are legally required to automatically cancel it at 78% LTV, as long as you are current on payments.
Does PMI go away automatically?
Yes, under the Homeowners Protection Act, PMI must be automatically cancelled at 78% LTV based on the original amortization schedule, regardless of whether you request it.
Can I remove PMI early with extra payments?
Yes. Extra principal payments reduce your balance faster, reaching the 80% LTV threshold sooner than the standard schedule. Home value appreciation can also help — a new appraisal may show you already qualify.
Is PMI the same as mortgage insurance on FHA loans?
No. PMI applies to conventional loans and can be removed at 80% LTV. FHA loans use MIP (Mortgage Insurance Premium), which in many cases lasts for the life of the loan regardless of equity, unless you refinance out of FHA.