PMI
Real EstateDefinition
Private Mortgage Insurance. Required on conventional residential mortgages with less than 20% down. Typically 0.5-1.0% of loan amount per year, paid as part of the monthly mortgage payment.
Cancellable once you reach 20% equity (request after; automatic at 22%). Different from MIP (FHA equivalent), which never cancels until you refinance out of the FHA loan.
Cancellable once you reach 20% equity (request after; automatic at 22%). Different from MIP (FHA equivalent), which never cancels until you refinance out of the FHA loan.
Example
$400K loan, 5% down, PMI rate 0.7% → annual PMI of $2,800 = $233/month. Lasts until you pay down to $320K (20% equity), assuming home value flat.
Related tool
Open the mortgage tool on Arsenal.finance →