Private Mortgage Insurance protects lenders, not borrowers, against default on conventional loans with less than 20% down. Understanding when PMI is required, how it is priced, and how to remove it can save thousands of dollars over the life of a mortgage.
When PMI Is Required
The estimate grid is an illustration, not a current insurer rate card or lender quote. Select an actual annual rate or monthly premium when available. Conventional quoted premiums stay constant on the original loan until the chosen conditional end. The FHA estimate uses the November 2025 ordinary-forward premium table, original-schedule annual-average basis and separate duration rules.
Automatic vs. Manual Cancellation
Keep three events distinct: written cancellation at 80% of original value; automatic termination at 78% on the original schedule; and the month after midpoint if still active. Payment status and other required conditions matter. The request also needs good payment history, no junior liens and evidence that value has not declined. Appreciation is not automatic approval.
Strategies to Eliminate PMI Faster
Extra-payment rows reuse the full loan ledger and separate interest savings from premiums. Scheduled automatic termination remains fixed; only conditional request eligibility or actual payoff may move. The chart separates original value from assumed current value so growth does not masquerade as a guaranteed cancellation date. Ask the servicer which pathway applies before relying on projected savings.
Alternatives to PMI
A piggyback adds a second amortizing debt rather than free insurance. Compare both loan payments, interest and remaining balances, with the same initial cash and horizon. This illustration uses a ten-year second loan; variable HELOC terms, origination fees and future rate resets are not modeled. Lender-paid or single-premium insurance requires a separate quote and cost comparison.