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, PhDMethodology & sources · 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 on the date your balance is first scheduled to reach 78% of the original home value (the lower of the price and the appraisal) on the loan's original schedule, assuming you're current on payments. Extra payments don't move that date, but they do bring the 80% point below closer. Whatever happens, it ends by the loan's midpoint.
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 servicer; you'll need a good payment history, and they can ask for evidence the home's value hasn't fallen.
If home values have appreciated significantly, you can also request a new appraisal: most servicers, following Fannie Mae and Freddie Mac, drop PMI at 25% equity after 2 years or 20% after 5. 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:
| Home price | Down payment | Monthly PMI | Years to 80% LTV at 6.5% | Total PMI paid |
|---|---|---|---|---|
| $300,000 | 5% | $225 | ~10.3 years | $27,900 |
| $300,000 | 10% | $150 | ~7.9 years | $14,250 |
| $300,000 | 15% | $90 | ~4.7 years | $5,040 |
| $500,000 | 5% | $375 | ~10.3 years | $46,500 |
| $500,000 | 10% | $250 | ~7.9 years | $23,750 |
Bumping a $300,000 purchase from 10% to 15% down means an extra $15,000 of cash at closing — but you save about $9,210 in PMI and shave 3.3 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, PMI ends when your original schedule reaches 78% of the home's original value — on a $300,000 home with 10% down at 7%, payment 115, about 9.6 years in. 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 value, you can submit a written request to your servicer. They must cancel if you're current, have a good payment history, can show the value hasn't fallen, and have no second mortgage. In the example above that's payment 101, 14 months before the automatic date.
- Pay down principal aggressively. An extra $200 per month on principal can cut years off the PMI obligation. On the same $270,000 loan at 7%, adding $200/month gets you to 80% LTV at payment 60 instead of 101, about 3.4 years sooner, saving $6,150 of PMI at $150 a month.
- Order a new appraisal after appreciation. If home values have risen 5-10% in your area since you bought, a new appraisal can prove enough equity (25% after 2 years, 20% after 5, for Fannie Mae and Freddie Mac loans) 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?
It's an insurance premium a lender requires on a conventional loan when you put down less than 20%, and it covers the lender's loss if you default, not yours. The cost usually runs 0.30% to 1.50% of the loan amount per year, added to your monthly payment. On a $300,000 loan that's roughly $75 to $375 a month, with credit score and down payment deciding where you land.
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?
Three ways. By law it stops without you asking once the loan's original schedule says you owe 78% of what the home was worth when you bought it, provided you're up to date, and never later than halfway through the term. Before that, once you reach 80%, you can send a written cancellation request if your payment record is clean and the value hasn't dropped. And if prices have risen, a fresh appraisal can end it: Fannie Mae and Freddie Mac servicers accept 25% equity after two years, or 20% after five.
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; the Homeowners Protection Act's cancellation rights don't apply to it, so the higher rate lasts for the life of the loan. (4) Use a VA loan (military, no PMI required) or USDA loan (rural, no PMI).
Is PMI tax deductible?
Yes again, from 2026. The deduction lapsed after 2021, and the 2025 tax law (P.L. 119-21, section 70108) brought it back for tax years beginning after December 31, 2025: premiums on a home loan's mortgage insurance count as mortgage interest if you itemize. It shrinks by 10% for each $1,000 of AGI over $100,000, so it's gone at $110,000 ($50,000 to $55,000 if married filing separately), and it doesn't cover policies issued before 2007. Consult a CPA about your situation.
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, usually financed) and annual (0.15-0.75% under HUD's 2023 rates; 0.50-0.55% on most 30-year loans). 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.