If you’re putting less than 20% down, this one’s for you.

You may have heard of something called PMI — or Private Mortgage Insurance — but you’re not quite sure what it is, why you have to pay it, or when you can ditch it.

You’re not alone. Mortgage insurance is one of the most misunderstood parts of the loan process — especially for first-time buyers.

Let’s break it down so you know what to expect, why it exists, and how to make it work in your favor.

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🔍 What Is PMI?

PMI (Private Mortgage Insurance) is a fee added to your mortgage when you’re using a conventional loan and putting less than 20% down.

It protects the lender (not you) in case of default. But the upside is: it allows you to buy a home sooner, without needing to wait until you have 20% saved.

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🧮 How Much Does It Cost?

PMI varies based on:

• Your loan amount
• Your credit score
• The size of your down payment

It usually adds $30–$100+ per month for every $100k you borrow.

Your lender will give you an exact breakdown — and help you compare monthly vs upfront options (some loans allow you to prepay it).

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🛠 Types of Mortgage Insurance

For Conventional Loans:

• Borrower-Paid PMI (BPMI): Most common, added monthly
• Lender-Paid PMI (LPMI): Built into your rate (less common)

For FHA Loans:

• Mortgage insurance is called MIP (Mortgage Insurance Premium)
• It includes:
  • A one-time upfront fee (rolled into the loan)
  • A monthly fee that lasts for the life of the loan (unless refinanced into Conventional)

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📉 Can You Avoid PMI?

Yes — if:

• You put 20% or more down on a Conventional loan
• You qualify for a VA loan (zero PMI, ever)
• You refinance later once you hit 20% equity

But for many first-time buyers, PMI is a small price to pay for getting into a home sooner. And it doesn’t last forever…

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🔓 When Can You Get Rid of PMI?

On Conventional loans:

• PMI automatically drops off when you reach 78% loan-to-value (LTV) based on original value
• You can request early removal at 80% LTV, with a new appraisal

On FHA loans:

• You’ll need to refinance into a Conventional loan to eliminate MIP in most cases

📘 Pro Tip: We can help you monitor your equity over time and let you know when refinancing or PMI removal becomes a smart option.

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💡 Bottom Line: PMI Isn’t Bad — It’s a Tool

PMI makes it possible for buyers to step into homeownership without waiting years to save 20%. It’s not forever — and for many, it’s a bridge worth using.

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🏢 Why PRMI?

Some brokers toss your file to whichever lender pays them the most — with little visibility into PMI costs or removal strategy. At PRMI, we handle most loans in-house — and that means:

• Transparent PMI options
• Clear estimates
• Real guidance on when (and how) to remove it

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👇 Want to See How PMI Might Apply to You?

We’ll walk through your numbers, your goals, and what options make the most sense — now and long term.