What PMI and FHA MIP actually cost, and the specific ways each one goes away.
Mortgage insurance protects the lender if a loan defaults. You pay it, they benefit, which is why it's worth knowing exactly how to get rid of it.
Conventional PMI
Required when you put down less than 20%, priced on credit score and loan-to-value. It is cancellable: you can request removal at 80% loan-to-value based on payments or a new appraisal, and it terminates automatically at 78% by amortization schedule. Rising values mean many borrowers qualify for cancellation years earlier than they expect.
FHA mortgage insurance
FHA charges 1.75% upfront plus an annual premium. With less than 10% down it stays for the life of the loan regardless of equity. The only real exit is refinancing into a conventional loan, which is exactly why we check equity for FHA borrowers every year or two.
Structures worth pricing
Single-premium PMI paid upfront, lender-paid PMI built into a slightly higher rate, and a split first/second structure can each beat monthly PMI depending on how long you'll hold the loan. I'll price them side by side rather than defaulting to the standard option.
Where to go next
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