Mortgage insurance

How Much Does PMI Cost?

Editorial Team · Updated July 1, 2026

Private mortgage insurance (PMI) usually costs between 0.46% and 1.5% of your loan amount per year — about $30 to $70 a month for every $100,000 you borrow. On a $300,000 loan that is roughly $115 to $375 a month, added to your payment until you build enough equity.

You pay PMI on a conventional loan whenever your down payment is under 20%. Your exact rate is driven mostly by your credit score and how much you put down: a strong score and a larger down payment push it toward the low end, a lower score toward the high end.

How much is PMI per month?

PMI is quoted as an annual percentage of the loan and split across 12 monthly payments. The table shows the monthly cost at three common rates.

Estimated monthly PMI by loan amount and rate

Loan amount	PMI at 0.5%	PMI at 1.0%	PMI at 1.5%
$200,000	$83	$167	$250
$300,000	$125	$250	$375
$400,000	$167	$333	$500
$500,000	$208	$417	$625

What determines your PMI rate

Credit score is the single biggest lever. A borrower with a 760+ score might pay around 0.46% a year, while a 620–639 score on the same loan can run as high as 1.5% — more than triple the cost.

After credit, your down payment matters most: the closer you are to 20%, the smaller the insured risk and the lower the rate. Loan term, debt-to-income ratio, the required coverage level, and whether the rate is fixed or adjustable also move the number.

Typical annual PMI by credit score (illustrative — rates vary by insurer)

Credit score	Typical annual PMI
760 or higher	0.46%–0.60%
700–759	0.60%–0.90%
680–699	0.90%–1.15%
640–679	1.15%–1.40%
620–639	up to 1.5%

How to cancel PMI

Because PMI protects the lender, not you, the goal is to shed it as soon as the law allows. Under the federal Homeowners Protection Act you can request cancellation once your balance reaches 80% of the home’s original value, and your servicer must cancel it automatically at 78%. It also ends at the midpoint of the loan term if you are still paying it.

Paying down principal faster, or a documented rise in your home’s value, can get you to 80% sooner — then you request cancellation in writing.

How to avoid PMI

The direct way to avoid PMI is to put 20% down. Other routes include a piggyback (80-10-10) loan that splits the financing to keep the first mortgage at 80%, lender-paid PMI baked into a slightly higher rate, or a VA loan, which never charges monthly mortgage insurance. Each trades one cost for another, so compare them before assuming 20% down is the only way.

PMI vs FHA MIP

PMI applies to conventional loans and cancels once you reach 20%–22% equity. FHA loans charge a different insurance (MIP) that usually lasts the life of the loan. If you are weighing the two, the cancellability of PMI is a major long-term advantage.

Sources

Put the numbers to work

Mortgage Calculator with PMI

Include private mortgage insurance in your payment and find out exactly when PMI drops off.

Down Payment Calculator

Turn a down-payment percentage into dollars and see whether you clear the 20% PMI threshold.

Mortgage Calculator

Estimate your monthly principal-and-interest payment and see a full amortization schedule for any home loan.

Related reference

Frequently asked

How much is PMI on a $300,000 loan?

At a typical rate of 0.5% to 1.5% a year, PMI on a $300,000 loan runs about $125 to $375 a month. Your exact cost depends mainly on your credit score and down payment.

How much is PMI per month?

Expect roughly $30 to $70 a month for every $100,000 borrowed. A $250,000 loan therefore costs about $75 to $175 a month in PMI until you reach 20% equity.

At what point does PMI go away?

You can request PMI cancellation when your balance hits 80% of the home’s original value, and your lender must remove it automatically at 78%. It also ends at the midpoint of your loan term.

How can I avoid PMI?

Put 20% down, use a piggyback second loan to keep the first mortgage at 80%, choose lender-paid PMI (a higher rate instead of a monthly premium), or use a VA loan, which has no monthly mortgage insurance.

All reference data