PMI Basics
Private Mortgage Insurance protects lenders if borrowers default. PMI is required on conventional loans with less than 20% down. Costs range from 0.5-2% of loan amounts annually depending on credit and down payment.
Removal Options
PMI automatically cancels at 78% loan-to-value. You can request removal at 80% LTV when you've built sufficient equity. Refinancing can eliminate PMI if home values have appreciated.
Accelerating Equity
Making principal-only payments accelerates equity building and PMI removal. Pay down mortgages strategically to eliminate PMI as quickly as possible.
