PMI typically costs 0.5%-1.0% of the loan amount per year, paid monthly as part of the mortgage payment. On a $400,000 loan with 10% down, that's roughly $150-$300/month extra.

Borrowers can request PMI cancellation once the loan-to-value ratio reaches 80%, and lenders must automatically remove it at 78% LTV based on the original payment schedule.

Unlike FHA's MIP, PMI doesn't apply to government loans (FHA, VA, USDA — those have their own insurance structures).