When does PMI automatically end?

Federal law requires automatic termination at 78% LTV based on original amortization.

Can I request earlier removal?

Yes — at 80% LTV. May require current appraisal. Saves 2-3 years vs automatic.

Does FHA mortgage insurance work the same?

No — FHA MIP rules are different (often for life of loan on loans originated after 2013).

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Can rising home value remove PMI?

Yes — if current appraised value puts you at 80% LTV. Lender typically requires their appraisal.

PMI Cost Calculator — Mortgage Insurance Premium

Q: Is PMI tax-deductible?

Mortgage insurance premium deduction expired federally — check current rules with CPA. Some states still allow.

Private Mortgage Insurance (PMI) is required on conventional loans with under 20% down — typically 0.3-1.5% of loan annually. PMI ends automatically at 78% LTV but homeowners can request removal at 80%. This calculator shows total cost and removal timeline.

Home Purchase Price ($)

Down Payment (%)

PMI Annual Rate (%)

Mortgage Rate (%)

Credit Score Tier

What PMI Costs

PMI rates depend on credit score and down payment. Best credit (760+) with 15% down: ~0.30% annual. Lower credit + lower down: up to 1.50%. On a $400K loan that ranges from $1,200 to $6,000 per year — significant lifetime cost if not removed promptly.

Automatic vs Requested Removal

Federal Homeowners Protection Act requires lender to terminate PMI automatically at 78% LTV based on original amortization schedule. You can REQUEST removal at 80% LTV — but lender often requires current appraisal and current-value verification. Requesting saves 2-3 years vs automatic.

Lender-Paid PMI Alternative

Some lenders offer 'Lender-Paid Mortgage Insurance' (LPMI) — higher mortgage rate (typically 0.25% higher) instead of separate PMI. Pro: no PMI line item. Con: rate stays higher even after 80% LTV. Math typically favours borrower-paid PMI if you plan to remove it within 7 years.

2026 PMI Rate Table by Credit Score and Down Payment

Use this 2026 reference grid to verify whether the PMI rate your lender quoted is competitive. Rates compiled from MGIC, Genworth (Enact), Radian, Essent, Arch MI, and National MI 2026 rate cards — the six major private mortgage insurers. Annual PMI is shown as a percentage of the loan amount; multiply your loan amount by the rate and divide by 12 to get monthly PMI:

760+ FICO, 15% down (85% LTV): 0.19% – 0.30% annual
760+ FICO, 10% down (90% LTV): 0.30% – 0.46% annual
760+ FICO, 5% down (95% LTV): 0.55% – 0.77% annual
720–759 FICO, 10% down: 0.36% – 0.55% annual
720–759 FICO, 5% down: 0.66% – 0.92% annual
680–719 FICO, 10% down: 0.55% – 0.92% annual
680–719 FICO, 5% down: 1.10% – 1.50% annual
620–679 FICO, 5% down: 1.30% – 1.85% annual (often the federal Qualified-Mortgage cap)

On a $400,000 loan, a single FICO tier swing (740 vs 720) can save $400–$900/yr in PMI alone. If your quote is materially above this band, ask the loan officer to re-shop the PMI carrier — Fannie Mae allows lenders to select from any approved MI provider, and a 25-point spread is common.

Is PMI Tax-Deductible in 2026? (OBBB Status Update)

For tax years 2022 through 2025, the federal mortgage insurance premium (PMI) deduction was NOT available — it had expired and was not extended. For tax year 2026, the deduction remains expired at the federal level unless restored by year-end legislation. Per the IRS Publication 936 — Home Mortgage Interest Deduction, only mortgage interest itself (not PMI) is currently deductible on Schedule A in 2026. A handful of states (NY, MD, MA, MN) still allow PMI deduction on the state return even when federal does not — check your state's Schedule A instructions. Plan as if PMI is fully out-of-pocket for federal purposes; that strengthens the case for paying down to 80% LTV early to drop it.

Sources: CFPB Homeowners Protection Act (12 USC §4901-4910); Fannie Mae PMI Guidelines; IRS Publication 936 (2026). Last updated: 2026-06-26.