# Private mortgage insurance (PMI)

> PMI is insurance a conventional lender requires when you put down less than 20%. It protects the lender. What it costs and when you can drop it.

URL: https://mortgage-math-us.com/glossary/private-mortgage-insurance/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

**Private mortgage insurance (PMI)** is insurance a lender usually requires on a [conventional loan](https://mortgage-math-us.com/glossary/conventional-loan/) when your down payment is less than 20% of the price. You pay for it, but it protects the lender — not you — if you stop making payments.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Typical cost, low end | $30 per $100k a month | [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) | Oct 28, 2026 |
| Typical cost, high end | $70 per $100k a month | [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) | Oct 28, 2026 |
| You can ask to cancel at | 80% | [CFPB](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/) | Oct 28, 2026 |
| Ends automatically at | 78% | [CFPB](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/) | Oct 28, 2026 |

## What it costs

Freddie Mac puts typical PMI at $30 to $70 a month for each $100,000 borrowed, depending mainly on your credit score and down payment. On a $337,500 loan — 10% down on a $375,000 home — that’s about $101 to $236 a month. Most borrowers pay it monthly with the mortgage; some pay a one-time premium at closing, or both.

## When it ends

On a loan for your main home, you can ask the servicer in writing to cancel PMI once the balance reaches 80% of the home’s original value, if you’re current and meet the other conditions. It must end automatically at 78%, and in any case at the midpoint of the loan’s schedule. In the example above, at 7.24% with regular payments, you could ask after about 8.6 years, and it would drop off on its own after about 9.8 years. Extra principal payments move both dates up.

FHA loans use a different system — see [mortgage insurance premium](https://mortgage-math-us.com/glossary/mortgage-insurance-premium/). The [PMI guide](https://mortgage-math-us.com/buying/pmi/) covers removal by new appraisal, and your [loan-to-value ratio](https://mortgage-math-us.com/glossary/loan-to-value-ratio/) is the number to watch.

## Sources

- [Freddie Mac Primary Mortgage Market Survey](https://www.freddiemac.com/pmms) — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- [Freddie Mac My Home](https://myhome.freddiemac.com/buying/breaking-down-pmi) — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- [CFPB](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/) — Ask your servicer to cancel PMI at this share of original value; PMI ends automatically at this share of original value (Oct 28, 2026)
- [CFPB: What is private mortgage insurance?](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/)
- [CFPB: When can I remove private mortgage insurance (PMI) from my loan?](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/)

_General information, not financial advice._