PMI Calculator
Calculate your monthly Private Mortgage Insurance cost. PMI is required on conventional loans when you put less than 20% down. Typical rate: 0.30%-1.50% of the loan amount annually, depending on credit score and LTV.
Reviewed & updated for 2026 by Rakesh Choudhary, PhD · How we calculate
How PMI works
PMI (Private Mortgage Insurance) is required on conventional mortgages when your down payment is less than 20% of the home's value. It protects the lender against default, not you. PMI doesn't help you in any way; it's purely a cost of borrowing with less than 20% down.
PMI rates depend on three factors:
- Credit score: 760+ pays ~0.30%/year; 620-639 pays ~1.50%/year on the same loan
- Loan-to-value (LTV) ratio: 95% LTV pays more than 85% LTV, more down payment = lower PMI rate
- Loan term: 30-year loans have higher PMI rates than 15-year loans
PMI rate ranges by credit score
| Credit score | PMI @ 5% down | PMI @ 10% down | PMI @ 15% down |
|---|---|---|---|
| 760+ | 0.55% | 0.45% | 0.30% |
| 720-759 | 0.75% | 0.60% | 0.40% |
| 680-719 | 1.05% | 0.85% | 0.60% |
| 640-679 | 1.35% | 1.10% | 0.85% |
| 620-639 | 1.55% | 1.30% | 1.05% |
Approximate rates from major PMI providers (MGIC, Genworth, Radian) as of 2026. Actual rates may differ.
When does PMI go away?
Under the Homeowners Protection Act (HPA), PMI automatically terminates when your loan balance reaches 78% of the original home value, assuming you're current on payments.
You can also request manual removal at 80% LTV, this is faster than waiting for automatic removal at 78%. Submit a written request to your lender.
If home values have appreciated significantly, you can also request a new appraisal to demonstrate 20%+ equity. Typical cost: $400-$600 for the appraisal, but saves the PMI cost for years.
The real cost of PMI on a typical purchase
Monthly PMI of $200 doesn't sound like much. Over the actual time you'll pay it, the total bill can easily reach five figures. Here's what PMI typically costs over the life of the obligation, before you reach 20% equity through payments alone:
| Loan amount | Down payment | Monthly PMI | Years to 80% LTV | Total PMI paid |
|---|---|---|---|---|
| $300,000 | 5% | $225 | ~9 years | $24,300 |
| $300,000 | 10% | $150 | ~6 years | $10,800 |
| $300,000 | 15% | $90 | ~3 years | $3,240 |
| $500,000 | 5% | $375 | ~9 years | $40,500 |
| $500,000 | 10% | $250 | ~6 years | $18,000 |
Bumping a $300,000 purchase from 10% to 15% down means an extra $15,000 of cash at closing — but you save almost $7,500 in lifetime PMI and shave 3 years off the obligation. If you're close to that 15% threshold, the math usually favors stretching for the bigger down payment.
Getting rid of PMI faster than the automatic timeline
By default, your lender automatically removes PMI when your loan balance reaches 78% of the original purchase price — which can take 10+ years on a 30-year amortization at typical rates. You don't have to wait that long. Three strategies accelerate PMI removal:
- Request manual removal at 80% LTV. Once your loan balance hits 80% of the original purchase price, you can submit a written request to the lender. They are required to comply if you're current on payments and have no second mortgage. This is usually 2-3 years faster than the 78% automatic threshold.
- Pay down principal aggressively. An extra $200 per month on principal can cut years off the PMI obligation. On a $300,000 loan at 7%, adding $200/month gets you to 80% LTV roughly 4 years faster — saving $7,200+ in PMI alone.
- Order a new appraisal after appreciation. If home values have risen 5-10% in your area since you bought, a new appraisal can prove 20%+ equity without waiting for the loan balance to drop. Cost: $400-$600. Savings: thousands in PMI you would otherwise pay for the next several years. Most lenders require you to wait 2 years after purchase before they'll accept a market-value-based PMI removal request.
Pro tip: track your loan's amortization schedule and put PMI removal on your calendar at the projected 80% LTV month. Lenders are not always proactive about manual removal — you usually have to request it in writing.
FAQs
What is PMI?
PMI (Private Mortgage Insurance) is insurance you pay on a conventional mortgage when your down payment is less than 20% of the home's value. It protects the lender, NOT you, if you default on the loan. PMI typically costs 0.30% to 1.50% of the loan amount annually, paid as part of your monthly mortgage payment.
How much is PMI per month?
PMI averages 0.5% to 1.0% of the loan amount annually. On a $300,000 loan, that's $1,500-$3,000/year, or $125-$250/month. The exact rate depends on your credit score, loan-to-value ratio (LTV), and loan type. Lower credit scores and higher LTVs mean higher PMI rates.
When does PMI go away?
PMI automatically cancels when your loan balance reaches 78% of the original home value (under the Homeowners Protection Act, as long as payments are current). You can request manual removal at 80% LTV. With significant home value appreciation, you can also request a new appraisal to prove 20%+ equity sooner.
How do I avoid PMI?
Three main ways: (1) Make a 20%+ down payment. (2) Get a piggyback loan (80-10-10 structure: 80% first mortgage, 10% second mortgage, 10% down). (3) Use lender-paid PMI (LPMI) where the lender pays PMI but charges a higher interest rate. (4) Use a VA loan (military, no PMI required) or USDA loan (rural, no PMI).
Is PMI tax deductible?
PMI deductibility has been off-and-on. Under current law (2026), PMI is generally NOT deductible for new loans. The PMI deduction expired at end of 2021 and was not extended by the One Big Beautiful Bill Act (OBBBA, 2025). Consult a CPA, the rule may change.
How much does credit score affect PMI?
Credit score dramatically impacts PMI rates. A borrower with 760+ FICO might pay 0.30% annually, while a 620 FICO borrower might pay 1.55%+ on the same loan. On a $300K loan, that's about $900/year vs. $4,650/year, a $312/month difference.
Does FHA have PMI?
FHA loans have a similar but different insurance called MIP (Mortgage Insurance Premium). MIP has two components: upfront (1.75% of loan, financed) and annual (0.45-1.05%). Unlike conventional PMI, FHA MIP lasts for the LIFE of the loan if you put less than 10% down, or 11 years if 10%+ down. The standard escape: refinance to conventional once you have 20%+ equity.
Can I pay PMI as a lump sum?
Yes, single-premium PMI lets you pay the entire PMI cost upfront at closing, then have no monthly PMI. Costs roughly 1-3% of the loan amount. Works well if you have cash to spare and plan to keep the loan long-term. Less ideal if you'll sell or refinance within 3-5 years.