Private mortgage insurance (PMI)
Insurance protecting your lender, which you may be able to cancel.
PMI is usually required when a mortgage starts above 80% of the home's value. It protects the lender, not you, and is added to the monthly payment.
You can generally request cancellation once the balance reaches 80% of the original value, and lenders are typically required to remove it automatically at 78%. The automatic point comes later than the point you may ask.
Rising home values can get you there sooner than the amortisation schedule suggests, but the rules on using current value rather than original value vary by lender and loan type.
Related
- Assessed value — The figure your county uses to calculate your tax — not what your house is worth.
- Market value — What a willing buyer would pay a willing seller, neither under pressure.
Property tax is state law and the details differ. For what applies where you live, see coverage by state and your appeal deadline.