Questions about this
How do I get rid of PMI?
Two ways. It terminates automatically once the loan balance reaches 78 percent of the original purchase price, on the schedule the lender set at closing. You can also request cancellation at 80 percent, and if the home has appreciated you can ask for a new appraisal to reach that point sooner. That request is worth making in a market that has moved.
Is PMI the same as the mortgage insurance on an FHA loan?
No. FHA loans carry their own mortgage insurance premium, which on most modern FHA loans lasts the life of the loan unless you put more than 10 percent down. That is a real difference: conventional PMI ends, FHA insurance usually does not. It is one of the reasons a slightly larger down payment on a conventional loan can beat a low down payment FHA loan.