What is PMI (Private Mortgage Insurance)?
Answer
PMI costs 0.5%-1% of the loan amount annually, required with less than 20% down
PMI protects the lender (not you) if you default on the mortgageRequired when your down payment is less than 20% of the home priceCosts $50-$250/month on a $300,000 loan (0.5%-1% of loan annually)PMI is automatically removed when you reach 78% loan-to-value ratioYou can request PMI removal at 80% LTV with a good payment historyFHA loans have their own mortgage insurance (MIP) with different rules
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How We Calculated This
Annual PMI = Loan Amount x PMI Rate (0.5% to 1.0%)
$300,000 loan x 0.75% PMI = $2,250/year = $187.50/month
Related Calculations
What is the monthly payment on a $100,000 mortgage at 5% for 15 years?$791/monthWhat is the monthly payment on a $100,000 mortgage at 5.25% for 15 years?$804/monthWhat is the monthly payment on a $100,000 mortgage at 5.5% for 15 years?$817/monthWhat is the monthly payment on a $100,000 mortgage at 5.75% for 15 years?$830/monthWhat is the monthly payment on a $100,000 mortgage at 6% for 15 years?$844/month
Calculated using verified formulas. Last updated March 2026.