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Private mortgage insurance (PMI) is a policy that protects the lender when a home buyer puts down less than 20% on a conventional mortgage. Lenders require PMI because loans above 80% loan-to-value (LTV) carry higher default risk. This PMI calculator estimates your monthly PMI cost based on your home price, down payment, credit score, and mortgage term. It also shows the month and year when PMI automatically drops off as your balance declines to 78% LTV. Keep in mind that actual PMI rates vary by insurer and lender, so the figures here are estimates.
Estimate your Private Mortgage Insurance cost based on your down payment, credit score, and loan details.
Estimated Monthly PMI
$123.75
at 0.55% annual rate
Current LTV
90.00%
$270,000.00 loan / $300,000.00 home
Estimated PMI Rate
0.55%
annual rate of loan amount
Monthly PMI Cost
$123.75
added to your mortgage
Annual PMI Cost
$1,485.00
per year
PMI Removal Timeline
80% LTV (Borrower-Request)
Month 95
May 2034
78% LTV (Auto-Termination)
Month 109
July 2035
Total PMI Paid Until 78% LTV
$13,488.75
Over 109 months (9 yrs 1 mo)
The 80% LTV borrower-request removal requires a good payment history and that the home value has not declined. The 78% LTV automatic termination is required by federal law once the scheduled balance reaches that threshold.
PMI rates are estimates and vary by insurer and lender. Contact your lender for exact pricing.
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PMI rates are determined primarily by two factors: your credit score and your loan-to-value ratio. Insurers price policies using credit score bands that reflect the statistical likelihood of default. A higher score signals lower risk, which translates into a lower annual premium.
The typical credit score bands and their approximate annual PMI rate ranges (as of July 2026) are:
Credit Score Impact on PMI: $300,000 Home, 10% Down ($270,000 Loan, 90% LTV)
Excellent (760+): 0.30% to 0.55% annually, roughly $68 to $124/month. Good (720-759): 0.55% to 0.78% annually, roughly $124 to $176/month. Fair (680-719): 0.78% to 1.05% annually, roughly $176 to $236/month. Below Average (640-679): 1.05% to 1.50% annually, roughly $236 to $338/month. These are estimates and actual premiums vary by insurer.
The difference between the lowest and highest band can exceed $200 per month on a $270,000 loan. Improving your credit score before applying is one of the most effective ways to reduce PMI costs. Even a modest score increase that moves you from one band to the next can save thousands over the life of the insurance.
To illustrate how PMI works with real numbers, consider a $300,000 home purchase with a 30-year fixed-rate mortgage at 6.5% and a credit score in the good range (720-759). The PMI cost changes depending on how much you put down.
5% down ($15,000): Loan amount $285,000 at 95% LTV. Estimated PMI rate 0.78% to 1.05%, producing a monthly PMI of roughly $186 to $249. Annual cost: $2,228 to $2,993. 10% down ($30,000): Loan amount $270,000 at 90% LTV. Estimated PMI rate 0.55% to 0.78%, producing a monthly PMI of roughly $124 to $176. Annual cost: $1,485 to $2,106. 15% down ($45,000): Loan amount $255,000 at 85% LTV. Estimated PMI rate 0.35% to 0.55%, producing a monthly PMI of roughly $74 to $117. Annual cost: $893 to $1,403.
Using the 10% down scenario, the monthly principal and interest payment on $270,000 at 6.5% is approximately $1,706. Adding PMI of roughly $150 brings the total to about $1,856 before taxes and insurance. At this payment level, the loan balance reaches 78% LTV (about $234,000) in approximately year 7. Total PMI paid over that period would be roughly $12,600. These are estimates; actual amounts depend on your specific PMI rate and amortization schedule.
Federal law establishes two key thresholds for PMI termination. At 80% LTV, you have the right to request cancellation in writing. Your servicer must honor the request if you have a good payment history, are current on the mortgage, and the home value has not declined. An appraisal may be required to verify current value.
At 78% LTV, the Homeowners Protection Act (HPA) requires the servicer to cancel PMI automatically on the date the scheduled principal balance first reaches that level. No request or appraisal is needed at this point. This automatic termination applies to conventional loans originated after July 29, 1999.
As an example, a $270,000 loan at 6.5% over 30 years reaches 80% LTV ($216,000 balance) at approximately month 84 (year 7) and 78% LTV ($210,600 balance) at approximately month 93 (year 8). These timelines shorten significantly if you make extra principal payments. For FHA loans with less than 10% down originated after June 2013, mortgage insurance premium (MIP) generally lasts for the entire loan term and cannot be removed in the same way.
FHA mortgage insurance premium (MIP) differs from conventional PMI in both structure and duration. FHA charges an upfront MIP of 1.75% of the loan amount at closing, plus an annual MIP that ranges from 0.15% to 0.75% depending on the loan term and LTV ratio. For a $270,000 FHA loan, the upfront cost alone is $4,725.
The most significant difference is duration. For most conventional loans, PMI drops off once the balance reaches 78% LTV, typically within 7 to 10 years. For FHA loans with less than 10% down originated after June 2013, the annual MIP lasts for the life of the loan. This means you could pay mortgage insurance for 30 years on an FHA loan, compared to roughly 8 years on a comparable conventional loan.
Side-by-Side Comparison: $300,000 Home, 10% Down, 30-Year Term
Conventional PMI: $270,000 loan, estimated 0.65% annual rate. Monthly PMI roughly $146. Drops off at 78% LTV around year 8. Total PMI paid: approximately $12,000 to $14,000 over the life of the insurance. FHA MIP: $270,000 loan, 1.75% upfront MIP ($4,725 at closing) plus 0.55% annual MIP ($124/month). MIP continues for 30 years. Total MIP paid: roughly $49,400 ($4,725 upfront plus $44,650 over 30 years). FHA may still be worth it if the interest rate is substantially lower or if your credit score makes conventional PMI prohibitively expensive.
To request PMI removal at 80% LTV, contact your loan servicer in writing. The servicer will review your payment history to confirm you have been current for the prior 12 months (or 24 months for high-risk loans). If your original appraisal does not show sufficient equity, the servicer may require a new appraisal at your expense to verify the home value has not declined.
Once your scheduled principal balance hits 78% LTV, federal law requires the servicer to cancel PMI automatically. This happens on the date your amortization schedule first reaches that threshold. At that point, no action is required on your part. If you reach the midpoint of the loan term (15 years on a 30-year mortgage) and PMI has not been canceled, the servicer must terminate it automatically as long as you are current.
Refinancing is another path to eliminating PMI. If your home has appreciated or you have paid down the balance enough to reach 20% equity, a new conventional loan at 80% or lower LTV will not require PMI. Making extra principal payments accelerates this timeline. Even an additional $100 per month toward principal can shave months or years off your PMI obligation. Home appreciation also helps: if your $300,000 home increases in value to $350,000 and your balance is $260,000, your LTV drops to roughly 74%, which may qualify you for immediate PMI removal with a new appraisal.
Browse all tools on the Home Buying Calculators hub. A Down Payment Calculator and Home Affordability Calculator are coming soon. You can also use our DTI Calculator to check whether your total debt payments, including the new mortgage and PMI, fit within lender qualification limits, or the Auto Loan Calculator to compare your existing auto debt against your projected housing costs.