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.
Frequently Asked Questions
How is PMI calculated in 2026?
PMI is calculated as a percentage of your loan balance, billed monthly. The rate depends on loan-to-value (LTV), FICO score, and property type. At 95% LTV with a 760+ FICO, PMI is approximately 0.41% of the loan annually; at 90% LTV that drops to roughly 0.29%. The CFPB requires lenders to disclose your exact PMI rate in the Loan Estimate within 3 business days of application.
When does PMI automatically end?
Under the federal Homeowners Protection Act of 1998 (HPA), PMI must terminate automatically when your loan balance reaches 78% of the original property value based on the original amortization schedule. You can also request cancellation at 80% LTV by writing to your servicer. Some lenders require you to have made payments for 2 years before honoring the early request.
How much PMI will I pay on a $400,000 home with 5% down?
With a 95% LTV, $380,000 loan, and a 760+ FICO, PMI runs approximately $130 per month ($380,000 × 0.41% / 12). Over the typical 9–11 years until you reach 78% LTV through normal amortization, total PMI cost is approximately $15,000. A 10% down payment ($40,000) would drop PMI to roughly $90/month for 5–6 years, saving over $9,000.
Is PMI tax-deductible in 2026?
The PMI deduction under IRC Section 163(h)(3) expired at the end of 2021 and has not been renewed by Congress as of May 2026. You cannot deduct PMI on your federal taxes in 2026. Check IRS.gov for current-year deduction rules — Congress has restored this deduction multiple times in past extender bills.
How can I cancel PMI before reaching 78% LTV?
The CFPB lists three methods: (1) make extra principal payments to reach 80% LTV faster and request cancellation in writing, (2) pay for a new appraisal once you believe home appreciation has brought LTV below 80% — most lenders accept this after 2+ years of seasoning, (3) refinance into a new loan with less than 80% LTV (only worth it if the new rate is lower).
Is PMI cheaper than FHA MIP?
For FICO scores above 700, conventional PMI is almost always cheaper than FHA Mortgage Insurance Premium (MIP). FHA also charges a 1.75% upfront premium that conventional PMI does not. For FICO 620–700, FHA may be cheaper for the first several years but FHA MIP lasts the entire loan term (unless you refi) while PMI drops off at 78% LTV.