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PMI (Private Mortgage Insurance) Guide
Understand what PMI is, when it's required, how much it costs, and when you can remove it. Learn about alternatives to PMI and factors that affect your PMI rate.
Key figures
- PMI typical cost: 0.46% to 1.50% of original loan amount annually
- Down payment less than 20% typically requires PMI
- PMI varies by credit score: 760+ credit gets 0.46%, 620-639 credit pays 1.50%
- 2026 New Rule: PMI insurance premiums now permanently deductible (no income limits) starting 2026
- Removal point: typically when you reach 20-22% equity (conventional loans)
Frequently asked questions
What is PMI and why do I need it?
PMI protects the lender if you default. It's required when your down payment is less than 20%.
How long do I have to pay PMI?
On conventional loans, once you reach 20% equity, you can request removal. FHA loans have different rules and longer PMI periods.
Can I avoid PMI?
Yes, by putting down 20% or more, or using an alternative loan product like an 80/10/10 loan.
How can I get PMI removed faster?
Make extra principal payments to reach 20% equity sooner. Your credit score improvement may also lower PMI rates.
Is PMI deductible on my taxes?
PMI was deductible through 2021 but expired. Starting 2026, PMI is permanently deductible with no income limits.
Tax outcomes depend on whether you itemize, your filing status, and local rules. These are estimates, not tax advice. A tax professional or lender can confirm the details for your situation.