When you pay it
On most conventional loans with less than 20% down.
What it costs
It depends mainly on your credit score and down payment. Lenders quote it in your Loan Estimate; ask for the figure with different down payments.
How to remove it
- Ask when your balance reaches 80% of the home’s original value, if you have a good payment history.
- Automatically when your balance is scheduled to reach 78% of the original value.
- Reappraisal: some lenders allow removal earlier if your home has risen in value.
FHA is different
FHA loans have their own mortgage insurance (MIP). With less than 10% down it lasts for the life of the loan; with 10% or more, 11 years. See FHA loans.
