Short answerMortgage insurance protects the lender when you put down less than 20%. On a conventional loan you can ask to cancel PMI at 80% of the original value, and it must end automatically at 78% if you are current. FHA mortgage insurance lasts 11 years with 10% or more down, otherwise for the life of the loan unless you refinance.
By loan type
| Loan | Upfront | Annual | How it ends |
|---|---|---|---|
| Conventional | Usually none | Varies with credit and down payment | Request at 80%; automatic at 78% of original value |
| FHA | 1.75% of the loan, usually financed | About 0.50% to 0.55% for most loans | 11 years with 10%+ down; otherwise life of loan |
| USDA | 1.00% guarantee fee | 0.35% | Life of loan |
| VA | Funding fee, some exemptions | None | No monthly insurance |
See FHA loans, USDA loans, and VA loans.
Loan rules and rates change and depend on your file. Your lender has the final word on what you qualify for.
Frequently asked questions
Can I remove FHA mortgage insurance?
With less than 10% down, generally only by refinancing into a non FHA loan.
Can home value increases remove PMI?
Some lenders allow cancellation based on a new appraisal. The 78% automatic rule uses original value.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email john@yourpropertynegotiator.com.
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
- FDIC Consumer Compliance Manual, Homeowners Protection Act
- HUD Mortgagee Letter 2023-05, FHA annual mortgage insurance premiums
- USDA Rural Development, FY 2026 guarantee fee notice
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.