What Is PMI? (And Can You Get Rid of It?)

Buying a home comes with no shortage of expenses. There’s your monthly mortgage payment, property taxes, homeowners association (HOA) fees, and homeowners insurance, not to mention regular maintenance. On top of all that, you may be required to purchase private mortgage insurance, or PMI. What’s PMI, exactly? Can You Cancel PMI? Check Your Home Value Enter a few details about your property and we’ll provide you with a home value estimate in less than two minutes. This won’t replace an appraisal, but it can help you run some preliminary math on your approximate loan-to-value (LTV) ratio. For many first-time buyers, PMI can feel like just another line item added to an already long list of costs. It often comes into play when you’re unable to make a large down payment, and while it doesn’t directly benefit you as the homeowner, it’s a condition you’ll likely need to meet to qualify for a mortgage. Understanding how it works and when it applies can make a big difference in your homebuying budget. Whether you’ll actually need PMI comes down to a few key factors. The upside is that, even if it’s required at the start, it doesn’t have to be a permanent cost. What is PMI? Private mortgage ...