PMI removal rules for first-time buyers (U.S.)
Common confusion: many buyers know PMI adds cost, but don’t plan when and how it can come off.
When PMI is usually required
For conventional loans, PMI is commonly required when down payment is below 20%.
How to plan for removal
- Track your loan-to-value path from day one
- Understand your servicer’s process and documentation requirements
- Compare scenarios with and without a PMI monthly fee to understand budget impact as removal approaches
Note: ProperCalc can model PMI as a monthly fee, but it does not automatically predict the PMI removal month. Confirm timing with your servicer and loan documents.
What to verify early
- Estimated PMI monthly amount at closing
- Milestones for potential cancellation/removal
- How property value updates may affect eligibility
Related guides
- Closing costs checklist for first-time buyers
- Compare mortgage offers (APR, PITI, cash-to-close)
- ARM vs fixed for first-time buyers (U.S.)
- First-time home buyer mistakes to avoid (U.S.)
Official resources (U.S.)
Run your scenario in the calculator
This guide is educational and not legal, tax, or financial advice.