Private mortgage insurance (PMI) is the monthly premium a lender charges when the down payment is under 20% on a conventional loan. It protects the lender, not the borrower, and ends once the loan reaches 78–80% of the home’s value; the calculator estimates the premium and when it falls off.
Calculate your private mortgage insurance costs, see how credit score affects your rate, and find out when you can remove PMI from your loan.
Private Mortgage Insurance (PMI) protects the lender if you default on your loan. It's required when your down payment is less than 20%.
PMI does NOT protect you as the borrower - it only protects the lender.
| Credit Score | 5% Down (95% LTV) | 10% Down (90% LTV) | 15% Down (85% LTV) |
|---|---|---|---|
| 760+ (Excellent) | 0.58% | 0.3% | 0.19% |
| 740-759 (Very Good) | 0.65% | 0.35% | 0.22% |
| 720-739 (Good) | 0.78% | 0.45% | 0.28% |
| 700-719 (Fair) | 0.95% | 0.55% | 0.37% |
| 680-699 (Average) | 1.1% | 0.7% | 0.48% |
| 660-679 (Below Average) | 1.35% | 0.9% | 0.65% |
| Below 660 (Poor) | 1.55% | 1.1% | 0.85% |
* Rates are estimates and vary by lender, loan type, and other factors. Actual rates may differ.
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See exactly when you can remove PMI, total cost over time, and how much extra down payment avoids it.
Private Mortgage Insurance, commonly known as PMI, is a type of insurance that protects lenders when borrowers make a down payment of less than 20% on a conventional mortgage. While PMI benefits the lender rather than the borrower, understanding how it works is essential for anyone purchasing a home with less than 20% down. Our free PMI calculator helps you estimate your monthly PMI costs, see when you can remove it, and understand how your credit score affects your rate.
PMI rates are determined by two primary factors: your loan-to-value (LTV) ratio and your credit score. The LTV ratio is calculated by dividing your loan amount by the home's value - a higher down payment means a lower LTV and typically lower PMI rates. Credit scores play an equally important role, with borrowers having scores of 760 or higher qualifying for the best rates. Someone with excellent credit and 10% down might pay only 0.30% of their loan amount annually, while a borrower with fair credit could pay 0.55% or more for the same down payment.
If you're facing PMI payments, there are several strategies to minimize or eliminate this cost. First, consider improving your credit score before applying for a mortgage - even a small improvement can significantly reduce your PMI rate. Second, if possible, increase your down payment to lower your LTV ratio. Third, make extra principal payments to reach 80% LTV faster and request early PMI removal. Finally, monitor your home's value - if it has appreciated significantly, you may be able to get a new appraisal and request PMI cancellation based on the higher value.
It's important to distinguish PMI from other types of mortgage insurance. FHA loans have their own Mortgage Insurance Premium (MIP) that works differently and cannot be removed as easily as conventional PMI. VA loans for veterans have no mortgage insurance requirement at all, making them an excellent option for eligible borrowers. USDA loans have their own guarantee fee structure. When comparing loan options, factor in the long-term cost of mortgage insurance alongside interest rates and other fees to determine the best overall value for your situation.
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Key facts
Monthly PMI ≈ loan amount × annual PMI rate ÷ 12. The rate depends on credit score and loan-to-value, commonly 0.3% to 1.5% a year. PMI can be cancelled on request at 80% loan-to-value and ends automatically at 78%.
$190 a month until the balance reaches $320,000 by payments or the home appraises high enough to bring the loan under 80%.
On a conventional loan, ask the servicer to cancel PMI once the balance is 80% of the original value, with a good payment history; the servicer must cancel it automatically at 78%. If the home has appreciated, a new appraisal can reach 80% sooner. FHA mortgage insurance works differently and usually lasts the life of the loan.
No. Private mortgage insurance is on conventional loans with under 20% down, priced by credit score, and cancellable at 80% loan-to-value. FHA loans charge an upfront premium of 1.75% of the loan plus an annual premium, and with under 10% down the annual premium stays for the life of the loan unless you refinance.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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