PMI is insurance that protects the lender when a conventional loan is originated above 80% LTV. It can often be requested for cancellation once the loan is paid down to a target LTV, subject to servicer and program rules.
Who this may fit
Anyone considering a conventional loan with less than 20% down, or currently paying PMI and wondering how and when it may end.
Key decision factors
- LTV at origination
- PMI structure (borrower-paid, single-premium, lender-paid)
- Credit profile and loan characteristics
- Whether the loan reaches the cancellation threshold via amortization or a new appraisal
Illustrative example
Common mistakes
- Assuming PMI ends automatically without checking the servicer's process
- Ignoring PMI when comparing rates across down-payment options
- Treating PMI cost as constant across borrowers — it varies
Questions to ask a licensed loan officer
- Which PMI structure fits my situation?
- What's the estimated cost of PMI over the time I expect to keep the loan?
- What are the steps and criteria to request PMI removal later?
Sources
We link to primary sources for every substantive claim. Publication dates below are marked as unverified until confirmed under our Source Policy.
- Fannie Mae Single-Family Selling GuideFannie Mae · Published/effective: living document · Last checked: 2026-07-28
- Freddie Mac Single-Family Seller/Servicer GuideFreddie Mac · Published/effective: living document · Last checked: 2026-07-28
- CFPB — Owning a Home / MortgagesConsumer Financial Protection Bureau · Published/effective: living resource · Last checked: 2026-07-28
Related guides and calculators
- Conventional Loan Down Payment
How down payment affects PMI, monthly payment, cash to close, and long-term outcomes on a conventional loan.
- PMI Removal Timeline Calculator
Estimate when scheduled amortization brings a conventional loan to 80% LTV for potential PMI removal.
- What Is a Conventional Loan?
A plain-English explanation of conventional loans: how they work, who they may fit, and key decision factors.