Estimate private mortgage insurance and when it drops off your loan
| Credit Score | Typical Annual PMI Rate | Monthly Cost on a $360,000 Loan |
|---|---|---|
| 760+ | 0.30% – 0.60% | $90 – $180 |
| 720 – 759 | 0.40% – 0.75% | $120 – $225 |
| 680 – 719 | 0.55% – 0.95% | $165 – $285 |
| 640 – 679 | 0.85% – 1.30% | $255 – $390 |
| 620 – 639 | 1.10% – 1.65% | $330 – $495 |
Rates also climb with higher loan-to-value ratios and larger loan sizes. A 5% down loan pays noticeably more than a 15% down loan at the same credit score, so these bands are a starting point, not a quote.
Private mortgage insurance protects the lender (not you) when you put down less than 20%. It gets tacked onto your monthly payment until your loan balance falls to a set share of the home's original value. This calculator shows what PMI costs each month, and just as importantly, when it goes away.
Loan amount = home price − down payment. LTV = loan ÷ price. Monthly PMI = loan × annual PMI rate ÷ 12. For the removal timeline, the calculator runs your amortization schedule month by month at your interest rate and finds when the balance hits 80% of the original value (you can request removal) and 78% (your servicer must cancel it automatically).
Enter the home price and down payment, as either a percentage or a dollar amount; the two fields stay in sync. The default 0.55% PMI rate is a reasonable middle estimate, but swap in a quote if you have one, since your credit score moves this number a lot. If your down payment is 20% or more, you'll see the "No PMI required" message instead of a cost.
Take a $400,000 home with 10% down. That leaves a $360,000 loan at 90% LTV. At a 0.55% annual PMI rate, you'd pay $1,980 a year, which is $165 a month on top of principal, interest, taxes, and insurance.
Now the timeline. At 6.5% on a 30-year loan, the balance reaches $320,000 (80% of the original value) in month 95, about 7 years 11 months in, when you can request removal. Automatic termination at $312,000 (78%) lands at month 109, roughly 9 years 1 month. Wait for the automatic cutoff and you'll have paid about $17,985 in PMI. That's a strong argument for requesting removal early, making extra principal payments, or asking for a reappraisal if prices in your area have climbed.
With 10% down, the loan is $360,000 and a typical 0.55% PMI rate works out to $1,980 a year, or $165 a month. Your actual rate depends mostly on credit score and loan-to-value: strong credit can pay 0.30% while lower scores can pay 1.5% or more on the same loan.
You can request cancellation once your balance falls to 80% of the home's original value, and your servicer must drop it automatically at 78%. You can also get there faster with extra principal payments, or ask for removal based on a new appraisal if your home's value has risen enough.
Yes. Under the Homeowners Protection Act, lenders must cancel PMI when your balance reaches 78% of the original purchase price, as long as you're current on payments. That happens on the scheduled amortization date, so it can take years. Requesting removal at 80% LTV gets it done sooner.
PMI pricing is heavily credit-driven. Borrowers at 760 or above typically pay around 0.30% to 0.60% of the loan per year, while scores in the 620 to 639 range can pay 1.10% to 1.65%. On a $360,000 loan, that's the difference between roughly $90 and $495 a month.
Sometimes. Lender-paid PMI trades the monthly fee for a higher rate, piggyback 80-10-10 loans use a second mortgage to keep the first at 80% LTV, and VA loans skip PMI entirely. Each option has trade-offs, so compare the total monthly cost against just paying PMI until it cancels.