PMI removal rules for first-time buyers (U.S.)
When and how to stop paying PMI
Private mortgage insurance (PMI) is required on most conventional U.S. loans when down payment is below 20% — but many first-time buyers don't plan for when and how it can be removed. This guide explains when PMI is typically required, how to track your loan-to-value progress toward removal, and what to verify with your servicer so you stop paying PMI as soon as you're eligible.
When PMI is usually required
For conventional loans, PMI is commonly required when down payment is below 20%.
How to plan for removal
- Track your loan-to-value path from day one
- Understand your servicer's process and documentation requirements
- Compare scenarios with and without a PMI monthly fee to understand budget impact as removal approaches
What to verify early
- Estimated PMI monthly amount at closing
- Milestones for potential cancellation/removal
- How property value updates may affect eligibility
Quick FAQ
When is PMI commonly required?
On many conventional loans, PMI is typically required when down payment is below 20%.
Can a calculator tell me my exact PMI removal month?
Not exactly. Use lender and servicer documentation for official timing and requirements.
What should I track from day one for PMI planning?
Track loan-to-value progress, servicer rules, and the monthly budget impact of PMI.
Related guides
Official resources (U.S.)
This guide is educational and not legal, tax, or financial advice.