Yes, Private Mortgage Insurance (PMI) is typically listed as a separate, monthly line item on your mortgage statement, often under the "Explanation of amount due" or "Escrow" sections. It is added to your payment if you have a conventional loan with less than 20% down.
How To Read PMI or MIP on a Mortgage Statement. The cost of your Private Mortgage Insurance or MIP is found in the “Explanation of amount due” section of your mortgage statement and is included in your escrow payment (which goes to your escrow account).
Generally, PMI will be added as part of your monthly mortgage payment. You may also be able to pay for PMI in full during the closing process, so talk with your home mortgage consultant about your options if you wish to pursue this route.
Your lender can provide you with your expected PMI range. Alternatively, you can use the average range (0.22% to 2.25%) to make an estimate of your expected monthly PMI payments. To calculate your PMI payments, simply multiply your total loan amount by your PMI percentage. The result is your annual premium.
Under the federal Homeowners Protection Act (HPA), your lender must:
Yes, Private Mortgage Insurance (PMI) can go away once you reach 20% equity, but federal law mandates automatic cancellation when your loan balance drops to 78% of the original home value (22% equity), and you can request it at 80% equity (20% down) if you're current on payments. You can reach this 20% equity through regular payments, home appreciation (via appraisal), or even refinancing, but you must contact your lender to initiate cancellation at the 80% mark, as lenders need proof of value and good payment history.
What Is the PMI Registry?
That means in addition to paying your property taxes and homeowners insurance into your escrow account, you also pay your monthly PMI fee into the escrow account as well. Because the escrow payment is combined with your regular monthly mortgage payment, you only have to make one house payment each month.
Exam findings
Most lenders require you to buy private mortgage insurance (PMI) if you make less than a 20% down payment on your house. The cost is usually folded into your mortgage payment. Your lender will get the insurance for you and tell you about the terms during closing.
The amount of PMI you paid is shown on Form 1098 (Mortgage Interest Statement) from your lender. Example: If you paid $5,000 in PMI and you're in the 24% tax bracket, you would save about $1,200 ($5,000 x 0.24 = $1,200).
Ask to cancel your PMI: If your loan has met certain conditions and your loan to original value (LTOV) ratio falls below 80%, you may submit a written request to have your mortgage servicer cancel your PMI. For more information about canceling your PMI, contact your mortgage servicer.
The 3-7-3 Rule in mortgages isn't a loan type but a federal timeline from the TILA-RESPA Integrated Disclosure (TRID) rule, ensuring borrower protection by mandating disclosures within 3 business days of application, a 7-business-day wait between the initial Loan Estimate and closing, and another 3-day wait if significant changes (like APR) occur, giving borrowers time to review costs before committing to a loan.
When PMI is canceled, the lender has 45 days to refund applicable premiums. That said, do you get PMI back when you sell your house? It's a reasonable question considering the new borrower is on the hook for mortgage insurance moving forward. Unfortunately for you, the seller, the premiums you paid won't be refunded.
For now, no. You won't be able to deduct the cost of your mortgage insurance premiums when you file a return for tax year 2025 — the same as it's been since the deduction expired at the end of 2021. That won't be the case for long, though.
If you're current on your mortgage payments, PMI will automatically terminate on the date when your principal balance is scheduled to reach 78% of the original appraised value of your home.
Private mortgage insurance (PMI) is a type of mortgage insurance you might be required to buy if you take out a conventional loan with a down payment of less than 20 percent of the purchase price. PMI protects the lender—not you—if you stop making payments on your loan.
Key takeaways. Federal law requires mortgage lenders to automatically cancel private mortgage insurance (PMI) when the mortgage balance drops to 78 percent of the home's purchase price, or when the loan term reaches its halfway point, whichever comes first.