Family First Funding -Team Keelin: Will I Need Private Mortgage Insurance?

If your down payment is less than 20% of the home value, you’ll need to pay private mortgage insurance (PMI) on top of your monthly mortgage payments. But once you’ve paid the mortgage balance down so that you have at least 20% equity in your home, you may request cancelling PMI. By law, the mortgager servicer must remove PMI when the mortgage balance falls to 78% of the home’s appraised value when you bought it.