How to Avoid PMI

PMI can add a meaningful monthly cost when you put less than 20% down. This page explains practical ways to avoid PMI (or reduce it faster) and gives you a calculator to estimate the impact on your payment.

Practical Ways to Avoid or Reduce PMI

• Increase down payment: A 20% down payment avoids PMI in many conventional loans.
• Choose a different loan structure: Some borrowers use a piggyback setup (for example, 80/10/10) to reduce or avoid PMI.
• Pay extra principal: Reaching the required loan-to-value threshold sooner can help you request PMI removal.
• Compare programs: FHA and VA loans handle mortgage insurance differently; the cheapest option depends on your profile.

Realistic Example

Example: a 10% down payment can trigger PMI. Estimate the monthly PMI cost below, then compare how a larger down payment changes the outcome using the Down Payment Calculator.

PMI Calculator