PMI is a type of insurance required on conventional loans where the loan amount is greater than 80% of the purchase price or property value. Once a minimum of 20% equity has been established, PMI may be eliminated. There is a difference in PMIs however. There is LPMI, or Lender Paid Mortgage Insurance - where the MI is included in the rate for the life of the loan. With LPMI, you will need to refinance to remove it - and what will rates been then? The best bet may be (and we can do the math for you) Monthly MI where there is an additional monthly fee added to your payment each month - this is the type that can be removed without a refinance! Typically, you will need an appraisal to start this process with your current lender.