PMI Calculator
Calculate private mortgage insurance cost on your conventional loan with 2026 PMI rates. See your monthly PMI, total PMI paid until automatic cancellation, and exact cancellation date based on federal law (80% request, 78% automatic).
Last updated: April 2026 · Source: Urban Institute 2026 PMI data via Bankrate, MGIC/Radian rate cards
20% or more = no PMI required
PMI rates by credit score and LTV
PMI rates are set by private mortgage insurance companies (MGIC, Radian, Genworth, National MI, Essent, Arch MI) and vary based on credit score, loan-to-value ratio, loan term, property type, and occupancy. The table below shows typical 2026 annual PMI rates for 30-year fixed conventional loans on single-family primary residences.
| Credit score | LTV 80-85% | LTV 85-90% | LTV 90-95% | LTV 95-97% |
|---|---|---|---|---|
| 760+ | 0.19% | 0.25% | 0.41% | 0.51% |
| 720-759 | 0.26% | 0.38% | 0.58% | 0.73% |
| 700-719 | 0.34% | 0.50% | 0.78% | 0.97% |
| 680-699 | 0.43% | 0.62% | 0.98% | 1.20% |
| 640-679 | 0.61% | 0.91% | 1.30% | 1.55% |
| 620-639 | 0.79% | 1.22% | 1.70% | 1.86% |
Annual PMI rate as percentage of loan amount. Source: Urban Institute 2026 data via Bankrate, cross-referenced with MGIC and Radian published rate cards. Individual quotes may vary by lender and property type.
How PMI cancellation works
The Homeowners Protection Act of 1998 (HPA) gives you three legal rights to cancel PMI on your conventional loan. Understanding these rules can save you thousands — most borrowers are eligible to remove PMI long before the loan is paid off.
1. Borrower-requested cancellation at 80% LTV
You can request cancellation when your loan balance reaches 80% of the original purchase price. You must ask in writing. The lender may require an appraisal (at your expense) to verify the home has not lost value. You must be current on payments with no 30-day lates in the past 12 months. This is the fastest way to remove PMI if you pay extra principal or the home appreciates quickly.
2. Automatic cancellation at 78% LTV
The lender MUST automatically cancel PMI when your loan balance reaches 78% of the original purchase price, no request needed. This happens through your normal amortization schedule — no special action required on your part. For a standard 30-year loan with 10% down at typical rates, this usually happens around year 10-11.
3. Midpoint cancellation at year 15 (30-year loan)
Even if your balance has not reached 78% LTV, the lender must cancel PMI at the midpoint of the loan term. For a 30-year loan, that is 15 years in. This rule applies to loans that are behind on amortization schedule — rare but possible if you had a very low down payment and the home lost value.
Frequently asked questions
What is PMI (private mortgage insurance)?
PMI is an insurance policy you pay for as a homebuyer, but it protects the lender — not you. It covers the lender in case you default on your mortgage. PMI is required on conventional loans when your down payment is less than 20% of the purchase price (loan-to-value ratio above 80%). It lets borrowers with smaller down payments buy a home without waiting years to save a full 20%. PMI is different from FHA mortgage insurance (MIP), which has separate rules and rates.
How much does PMI cost in 2026?
PMI typically costs between 0.46% and 1.50% of the original loan amount per year, paid monthly as part of your mortgage payment. Your specific rate depends on your credit score, loan-to-value ratio, loan term, and debt-to-income ratio. A borrower with a 760+ credit score and 10% down might pay 0.25%-0.35% annually, while a borrower with a 640 score and 3% down might pay 1.30%-1.55%. On a $400,000 loan, that is the difference between roughly $83/month and $517/month — huge.
When can I cancel PMI?
Federal law (the Homeowners Protection Act of 1998) gives you three ways to cancel PMI: (1) Request cancellation when your loan balance reaches 80% of the original home value. You must ask in writing. The lender may require an appraisal. (2) Automatic cancellation when your loan balance reaches 78% of the original home value — the lender must cancel it without you asking. (3) Automatic cancellation at the midpoint of your loan term (15 years into a 30-year mortgage), even if you have not reached 78% LTV. You also cannot have been more than 30 days late on any payment in the prior 12 months.
How is PMI calculated?
PMI is calculated as a percentage of your loan amount, paid monthly. Formula: Monthly PMI = (Loan Amount × Annual PMI Rate) ÷ 12. Example: $360,000 loan × 0.0065 annual rate = $2,340 annual PMI ÷ 12 = $195 monthly PMI. Your annual PMI rate is set by a private mortgage insurance company (MGIC, Radian, Genworth, National MI, Essent, or Arch MI) based on your credit score, LTV, loan term, property type, and occupancy status. Single-family primary residences get the best rates.
How can I avoid paying PMI?
Six main ways: (1) Put 20% down — PMI is not required at 80% LTV or lower. (2) Use a piggyback loan (80/10/10) — first mortgage at 80% LTV, second mortgage for 10%, and you pay 10% down. (3) Use a VA loan if eligible — no mortgage insurance required for veterans and active military. (4) Use lender-paid PMI (LPMI) — the lender pays PMI in exchange for a higher interest rate (you still pay, but through the rate). (5) Some credit unions and portfolio lenders offer no-PMI programs with lower down payments. (6) Wait and save more. Which option wins depends on your specific math.
Is PMI a waste of money?
Not necessarily. PMI lets you buy a home 3-5 years earlier than if you saved a 20% down payment. In appreciating markets, the home equity gained during those years often exceeds the total PMI paid. Example: buying a $400,000 home with 5% down in 2021 cost roughly $12,000 in total PMI over 4 years, but the home appreciated to $520,000 in that time — a $120,000 equity gain. The PMI was the price of admission to that appreciation. However, in a flat or declining market, PMI is purely a cost with no offsetting benefit.
Does PMI affect my mortgage interest rate?
No, PMI and your interest rate are separate charges. PMI is a monthly insurance premium, while the interest rate determines how much of your payment goes to interest vs principal. However, they interact in lender-paid PMI (LPMI): instead of paying monthly PMI, the lender raises your interest rate by 0.25%-0.75% and calls it "no PMI." You still pay — just through the rate instead of a separate line item. LPMI cannot be canceled when you reach 80% LTV, so it often costs more over time than traditional PMI.
What credit score do I need to avoid high PMI rates?
To get the lowest PMI rates, aim for 760+ credit score. At 760+, PMI rates are typically 0.19%-0.51% depending on LTV. Between 720-759, rates climb to 0.26%-0.73%. Between 680-719, 0.43%-1.20%. Below 680, PMI gets expensive quickly — 620-639 can hit 0.79%-1.86%. The difference between a 720 and 760 credit score on a $400,000 loan can be over $2,000 per year in PMI. Before buying, check your credit reports, dispute errors, pay down balances, and avoid new credit applications.
Can I pay PMI upfront instead of monthly?
Yes — this is called "single premium PMI" or "upfront PMI." You pay the full PMI premium in a lump sum at closing instead of spreading it across monthly payments. The upfront cost is typically 1.5%-3.5% of the loan amount. Pros: lower monthly payment, potential tax deduction in the year paid (check with your CPA), no PMI to cancel later. Cons: large upfront cost, no refund if you sell or refinance early, no benefit if home appreciation removes PMI quickly anyway. Most borrowers stick with monthly PMI because it is more flexible.
What happens to PMI when I refinance?
When you refinance, your original loan is paid off and PMI ends with it. The new loan starts fresh: if you have 20% or more equity in the home at the time of refinance (based on current appraised value, not the original purchase price), no PMI on the new loan. If you still have less than 20% equity, the new loan will have its own PMI — possibly at a different rate. Refinancing is a popular way to remove PMI when your home has appreciated: the new appraisal reflects the higher value, putting you above 80% equity.
Does PMI cover me if I lose my job?
No. PMI covers the lender, not you. If you lose your job and cannot make payments, PMI does nothing to help you — it only pays the lender if the home is foreclosed and sold for less than the loan balance. If you want insurance that protects YOU against job loss, look into mortgage protection insurance (MPI), which is a separate product. MPI is usually offered by the same companies and pays your mortgage for a limited period if you lose your job or become disabled. It is generally considered expensive relative to its value.
Is PMI tax deductible?
It depends on the year and your income. The PMI deduction expired at the end of 2021 and has not been permanently reinstated. Congress has historically extended it retroactively, but you cannot count on it. Even when available, the deduction phases out for higher incomes (typically above $100,000 AGI, eliminated at $109,000) and requires itemizing deductions — which most homeowners no longer do because of the higher standard deduction. In practice, most PMI payments are not tax-deductible in 2026. Check with a tax professional for your specific situation.
Data sources: Urban Institute 2026 PMI rate data via Bankrate; MGIC, Radian, and Genworth published rate cards; Homeowners Protection Act of 1998 (federal PMI cancellation law).
Last updated: April 2026. PMI rates vary by insurance provider and change periodically. Individual quotes depend on specific loan and borrower characteristics.
Disclaimer: This calculator provides estimates for educational purposes only and is not financial advice. Get personalized PMI quotes from your lender or mortgage broker for your specific situation.