(Don’t let private mortgage insurance cost you thousands more than it should.)

This is one of the biggest blind spots for first-time homebuyers — and sadly, one of the most expensive ones too. If you’re putting less than 20% down on your home (which is totally normal for first-time buyers), you will have to pay mortgage insurance. And it can quietly cost you thousands, even tens of thousands, unless you fully understand how it works — and how to get rid of it.

Let’s break it down so you don’t make this mistake.

What is PMI (or MIP)?

  • PMI (Private Mortgage Insurance) is required by lenders when your down payment is less than 20%.
    It protects the lender — not you — in case you stop making payments.
  • On FHA loans, this is called MIP (Mortgage Insurance Premium).
    Same idea, different name.

And here’s the thing: PMI (or MIP) is built into your monthly mortgage payment. That means your monthly payment is significantly higher than it would be without it.

What Most People Don’t Know

Most buyers assume they’re stuck with PMI for the life of the loan.
Wrong.

In many cases, you can remove PMI once you have 20% equity in your home — either by:

  • Paying down your mortgage (equity increases as you make payments)
  • Your home’s value increasing (appreciation adds equity)

But here’s the kicker: It’s not automatic.
You have to know the rules, ask the lender for them in writing, and follow up when you’re eligible.

How This Can Cost You Thousands

If you don’t ask your lender:

  • You may pay PMI for the entire life of the loan
  • You might miss the opportunity to remove it and lower your monthly payment
  • You could end up throwing away $10,000–$30,000 (or more) over time

We’ve seen it happen more times than we’d like to admit — buyers who simply didn’t know they could remove it, or didn’t understand how.

What You Need to Do

  • Ask your lender upfront:
    “What’s your policy for removing PMI or MIP?”
    (And get it in writing.)
  • Track your equity annually:
    Either through your loan balance or your home’s current market value (House Karma can help with that).
  • Request removal in writing when eligible:
    Many lenders require a formal request, a new appraisal, and good payment history.
  • Read the full PMI & MIP section on the House Karma website:
    We explain it in plain English, with timelines, examples, and even templates for how to request removal when it’s time.

Final Word of Advice

This isn’t something to ignore.
This isn’t something to “get to later.”
This is thousands of dollars of your hard-earned money.

The only reason most buyers don’t remove PMI is that no one tells them they can — or how to do it.
We’re not going to let that happen to you.

At House Karma, we believe in educating and protecting buyers — especially first-time buyers who need honest answers, not vague industry talk.

So please, learn about PMI and MIP before you close, and make sure you’re asking the right questions from day one. It’ll save you money, stress, and a whole lot of frustration later.

You worked hard for this home. Let’s make sure you don’t pay a penny more than you have to.

Final Note:

There is a comprehensive section all about PMI and MIP on the House Karma website.
We strongly urge you to read it and understand how it works before you even talk to a lender.
Knowing the right questions to ask now could save you tens of thousands of dollars later.