Mortgage Guides

PMI is lender insurance on many conventional loans above 80% LTV. Monthly cost comes from the rate you are quoted. Cancellation rules differ by loan type.

PMI is typically loan amount × annual rate, divided by 12 for a monthly estimate. The rate comes from your lender, not a fixed table.

Many conventional loans allow PMI cancellation near 80% of original value and automatic termination near 78% on the schedule. Rules vary by loan type.

PMI is conventional mortgage insurance. FHA MIP, VA funding fees, and USDA guarantee fees are separate products with different rules.

LTV compares your loan balance to the home value. Above 80% LTV, many conventional borrowers pay PMI.

Monthly P&I comes from loan amount, rate, and term using the standard amortizing formula. Taxes, insurance, and PMI are added separately.

Interest is charged on the remaining balance; principal pays down the loan. The split changes every month on a fixed payment.

An amortization schedule shows how each payment splits between principal and interest until the loan is paid off.

PITI is principal, interest, property taxes, and homeowners insurance. Full housing cost often includes PMI and HOA too.

A 15-year loan costs more each month and usually far less interest over the life of the loan. A 30-year loan lowers the required payment and costs more interest if you keep it.

Affordability tools estimate a housing budget from income, debts, and costs. They are not pre-approvals. Keep payment, reserves, and loan term in the same conversation.

More down means less borrowed and often no PMI at 20%. Less down preserves cash but raises monthly cost and may require insurance.

Extra principal can cut interest and shorten payoff if the servicer applies it correctly. It is optional cash, not a guaranteed investment return.

Extra principal saves interest, but only makes sense if you can afford it after reserves and higher-priority debts.

A lump-sum principal payment can cut interest and shorten payoff. The required monthly payment usually stays the same unless you recast or refinance.

Biweekly plans make 26 half-payments per year — about one extra monthly payment — which can reduce interest like recurring extra principal.

Break-even asks how long a lower payment takes to recover refinance costs. Check remaining term and total interest, not the payment change alone.

A recast recalculates payment on your existing loan after a principal reduction. A refinance replaces the loan. Eligibility depends on the servicer and lender.