PMI Explained: How to Avoid or Reduce Private Mortgage Insurance
Private Mortgage Insurance (PMI) is required when you put down less than 20% on a conventional mortgage. Learn what triggers PMI, how it's calculated, cancellation rules, and strategies to lower or remove it.
What is PMI?
PMI protects the lender if you default on your loan. Typically costs 0.5% to 1% of the loan amount annually, added to your monthly payment.