PMI Cost by Down Payment
| Down Payment | LTV | PMI Rate (est.) | On $350k loan |
|---|---|---|---|
| 3% ($12,600) | 97% | 1.2%–1.5% | $350–$438/mo |
| 5% ($21,000) | 95% | 1.0%–1.3% | $292–$381/mo |
| 10% ($42,000) | 90% | 0.7%–0.9% | $204–$263/mo |
| 15% ($63,000) | 85% | 0.3%–0.5% | $88–$146/mo |
| 20%+ | 80% or less | None | $0 |
When Does PMI End?
- Request removal: When you reach 20% equity (80% LTV) — submit written request to lender
- Automatic cancellation: By law when you reach 22% equity (78% LTV) based on original schedule
- Midpoint: Automatically cancelled at midpoint of loan term (15 years on a 30yr loan)
How to Remove PMI Early
- Pay down principal faster — extra $200/month accelerates equity build
- Home value increases — get a new appraisal if values have risen (pays for itself if PMI is $200+/month)
- Refinance — if new LTV would be under 80%, no PMI on new loan
Frequently Asked Questions
How much does PMI cost per month?
PMI typically costs 0.3%–1.5% of the original loan amount annually. On a $300,000 loan, that's $75–$375 per month. Your exact rate depends on your credit score, down payment, and lender.
Can I deduct PMI on my taxes?
The PMI deduction has historically been available but Congress must renew it periodically. Check the current tax year guidance — it's not a guaranteed deduction every year.
Is PMI the same as homeowners insurance?
No — they are completely different. PMI protects the lender if you default. Homeowners insurance protects your home against damage and liability. Both are typically required by lenders.
Ready to calculate?
Free, instant, no login needed.
Calculate My PMI Payment