Sarah Martinez · Golden Key Realty
How long am I paying mortgage insurance?
The date the balance hits 80% of the original price (when you can ask) and 78% (when it must come off by law), and what an extra payment does to both.
When does PMI drop off?
You can ask for it to come off after
7 yr 11 mo
Mortgage insurance
$309/mo
Total if you ask on time
$29,391
Automatic removal at 78%
9 yr 1 mo
| Loan amount90% of the price | $675,000 |
| Mortgage insurance each month | $309 |
| Balance reaches 80% of the priceYou may request cancellation in writing | 7 yr 11 mo |
| Balance reaches 78% of the priceThe servicer must remove it, no request needed | 9 yr 1 mo |
| 80% of the home's value, with appreciationNeeds a new appraisal the lender accepts — their call, not yours | 2 yr 10 mo |
| Total paid if you cancel at 80% | $29,391 |
Paying about $2,325 extra each month would get you to 20% inside two years — worth weighing against $309 a month of insurance that buys you nothing.
Automatic cancellation at 78% uses the original purchase price, not today's value. Getting there sooner because the home went up requires an appraisal your servicer agrees to.
Federal rules under the Homeowners Protection Act apply to most conventional loans. FHA mortgage insurance follows different rules and often lasts the life of the loan.
While you're here
Monthly payment
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Affordability
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Budget → price
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Cash to close
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Rent vs buy
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Points buydown
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Refinance
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