How To Get Rid Of PMI
Author:
Kevin GrahamJan 29, 2025
•7-minute read
While it’s not a bad idea to save as much as you can for a down payment, other goals and the urgency of the situation mean this isn’t feasible for many buyers. But if you’re getting a conventional loan, you can get into a home with as little as 3% down. You just have to pay private mortgage insurance (PMI). But no one likes to pay extra fees longer than they have to, so we’ll go over when and how to get rid of it.
The requirements for removing PMI can vary when dealing with a multiunit or investment property. We’ll talk briefly about how that works in a special section later on, but understand that the majority of this article will deal with PMI on single-unit and vacation homes.
What Is PMI?
Private mortgage insurance, or PMI, provides a payment for part of the outstanding loan amount if a borrower defaults on their loan. While lenders get some peace of mind for taking on additional risk, it also benefits those looking to buy or refinance a home because they can get mortgages with down payments or existing equity lower than 20%. But you can also typically request its removal once you reach 20% equity.