Mortgage PMI Monthly Rate Calculator
Calculate your exact monthly Private Mortgage Insurance cost based on loan-to-value ratio, FICO score, and loan amount. See when you reach 78% LTV to drop PMI automatically under the Homeowners Protection Act.
How Mortgage PMI Costs Are Calculated in 2026
Private Mortgage Insurance (PMI) is required by lenders on most conventional conforming loans when the down payment is less than 20% of the home's value. Under the federal Homeowners Protection Act of 1998 (HPA), PMI must automatically terminate when your loan-to-value ratio reaches 78% based on the original amortization schedule. You can also request cancellation at 80% LTV.
PMI rates vary by three main factors: loan-to-value ratio (higher LTV = higher PMI), FICO credit score (lower score = higher PMI), and property type (condos and investment properties cost more). Current 2026 rates from major mortgage insurers (MGIC, Radian, Essent, National MI, Arch MI) typically range from 0.20% to 1.50% of the loan amount per year.
The 2026 PMI Rate Matrix
This calculator uses the standard PMI rate grid published by the major US mortgage insurance providers. Key bands at 95% LTV (5% down):
- 760+ FICO — approximately 0.41% of loan annually
- 720–759 FICO — approximately 0.55% of loan annually
- 680–719 FICO — approximately 0.78% of loan annually
- 660–679 FICO — approximately 1.10% of loan annually
- 620–659 FICO — approximately 1.50% of loan annually
At 90% LTV (10% down) all bands drop by roughly 30%; at 85% LTV by roughly 55%. Condos add a 15% surcharge and 2–4 unit properties add 20%, per Fannie Mae LLPA tables.
How to Cancel PMI Early
The CFPB confirms three ways to drop PMI before the automatic termination point:
- Reach 80% LTV through normal payments — your servicer must cancel upon written request once you hit 80% based on the original purchase price.
- Reach 80% LTV through extra principal payments — same as above, but accelerated.
- Request a new appraisal after home value appreciation — if the new appraisal shows you below 80% LTV based on current market value, most lenders will cancel. Typically requires 2+ years of seasoning.
PMI vs FHA MIP — Which Is Better?
Conventional PMI is generally cheaper than FHA Mortgage Insurance Premium (MIP) for borrowers with FICO scores above 700. FHA MIP also includes a 1.75% upfront fee that PMI does not have. However, FHA MIP is available at lower FICO scores (580+) where conventional PMI either is not offered or becomes prohibitively expensive. The CFPB recommends comparing both options when your FICO is between 620 and 700.
Sources: Consumer Financial Protection Bureau (consumerfinance.gov), Homeowners Protection Act 1998 (12 U.S.C. § 4901), MGIC Rate Card 2026 (mgic.com), Radian Rate Sheet (radian.com), Fannie Mae LLPA Matrix (fanniemae.com). Last updated: May 2026.