See how much PMI really costs you
See what PMI adds to your monthly payment, the exact month it drops off, and how much a bigger down payment would save — or eliminate PMI entirely.
Loan & credit details
What you’ll pay
Actual PMI rate depends on lender, loan type, and full underwriting. Estimates only based on national averages. Always confirm with a licensed lender.
What this means for your PMI
With 5.0% down on a $400,000 home at Good (720–759) credit, you’ll pay $219/mo in PMI (0.69% annual rate).
At scheduled amortization, PMI will automatically drop off when your loan balance hits $312,000 (78% LTV) — roughly 3.9 years in. You can also request cancellation at $320,000 (80% LTV), typically after an appraisal confirming home value.
Considering a bigger down payment? Compare 5%, 10%, and 20% down to see how PMI changes.
How down payment changes your PMI
Same $400,000 home, Good (720–759) credit — only the down payment changes.
| Scenario | 3% down $12,000 | 5% down $20,000 | 10% down $40,000 | 15% down $60,000 | 20% down $80,000 |
|---|---|---|---|---|---|
| Monthly PMI | $265 | $219 | $144 | $91 | $0 (none) |
| Annual PMI | $3,182 | $2,622 | $1,728 | $1,088 | $0 |
| LTV | 97.0% | 95.0% | 90.0% | 85.0% | 80.0% |
| Total PMI until removal Roughly at scheduled amortization | $13,522 | $10,270 | $5,040 | $1,995 | $0 |
Even 10% down dramatically reduces PMI vs the minimum 3%. 20% eliminates it entirely.
How credit score changes your PMI
Same 5.0% down on a $400,000 home — only your credit band changes.
| Scenario | Excellent 760+ | Good 720–759 | Fair 680–719 | Low 620–679 |
|---|---|---|---|---|
| Monthly PMI | $149 | $219 | $336 | $475 |
| Annual PMI rate | 0.47% | 0.69% | 1.06% | 1.50% |
| Total PMI until removal | $6,995 | $10,270 | $15,776 | $22,325 |
A 760+ credit score pays roughly half the PMI of a 620–679 score for the same loan.
How PMI ends: automatic vs. requested
Two paths to drop PMI — one happens on its own, one needs you to ask.
Required by federal law (Homeowners Protection Act). Lenders must automatically cancel PMI when your loan balance reaches 78% of the original value based on scheduled amortization — you don’t have to do anything.
You can ask your lender to cancel PMI earlier, at 80% LTV. If your home has appreciated, you can base this on current value — typically by paying for a new appraisal ($400–$600). This can save months of PMI.
Warning on FHA loans: FHA MIP (their version of PMI) usually sticks for the life of the loan if you put less than 10% down. The only way off is to refinance into a conventional loan once you have 20% equity.
Common mistakes buyers make
Compare 5%, 10%, and 20% down to reduce PMI
Plan how fast you can hit the 20% mark to eliminate PMI altogether — and see what a bigger down payment does to your monthly budget.
PMI in plain English
Private mortgage insurance protects the lender (not you) if you stop making payments. It’s added to your monthly payment when your loan-to-value ratio is above 80%.
- • Rates range from ~0.2% to 1.7% of the loan amount per year.
- • Higher credit scores + larger down payments = lower PMI.
- • PMI must automatically drop off at 78% LTV (scheduled).
- • You can usually request cancellation at 80% LTV.
Ways to avoid or reduce PMI
- Put 20% down on a conventional loan.
- Improve your credit score before applying — the best rates start around 760.
- Lender-paid PMI (LPMI) can swap PMI for a slightly higher rate; the math only works sometimes.
- VA loans never have PMI if you qualify.
PMI vs. FHA MIP: which is cheaper?
FHA loans have their own mortgage insurance (MIP) that works differently. Here’s a quick comparison for a $350,000 home purchase.
| Conventional + PMI | FHA + MIP | |
|---|---|---|
| Minimum down payment | 3% | 3.5% |
| Minimum credit score | 620 (740+ for best rates) | 580 (500 with 10% down) |
| Upfront fee | None | 1.75% of loan amount |
| Annual insurance rate | 0.2–1.5% | 0.55% |
| Can it be removed? | Yes, at 80% LTV | Only by refinancing (usually) |
| Best for | Credit 680+, putting 5–15% down | Credit under 680, small savings |
Related tools
Keep planning with our other free calculators and guides.
Mortgage calculator
Full PITI including PMI.
Down payment calculator
How much faster can you hit 20%?
Affordability calculator
See what you can comfortably afford.
Refinance calculator
Can you refi to drop PMI?
Guide: What is PMI?
Deeper dive into PMI mechanics.
Closing costs calculator
Costs at the closing table.
PMI by state
Tap a state for local averages and tailored estimates.