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How Much Does PMI Cost Per Month? 2025-2026 Rates by Loan Amount
PMI cost: 0.2-2% of loan amount annually; most buyers pay 0.5-1.5%. $250K loan at 0.8%: $167/month. $350K at 0.85%: $248/month. $500K at 0.75%: $313/month. Rate factors: LTV (higher LTV = more expensive), credit score (760+ pays least), loan type (fixed vs ARM), occupancy. On $400K loan: range from $100-$400/month depending on credit and LTV. Own Luxury Homes® 12-Point Agent Integrity Audit™.
How Much Does PMI Cost Per Month? 2025-2026 Rates by Loan Amount
PMI rates vary by loan amount, LTV, credit score, and lender. Here is what to expect at different price points.
PMI Rate Factors: What Makes It More or Less Expensive
PMI is not a flat rate. Four factors primarily determine your specific PMI cost: LTV ratio: the closer you are to 80% down, the lower your PMI rate. A buyer putting 10% down (90% LTV) pays significantly less than one putting 3% down (97% LTV) because the lender carries less risk. Credit score: PMI rates are tiered by credit score. A buyer with a 760+ score might pay 0.3–0.5% annually; a buyer with a 620–639 score might pay 1.2–1.8% on the same loan. The difference can be $200–$400/month on a $400,000 loan. Loan type: fixed-rate loans typically have lower PMI rates than adjustable-rate mortgages (ARMs). Owner-occupancy: primary residences have lower PMI rates than investment properties or second homes.
PMI Cost by Loan Amount and LTV (Approximate)
These ranges reflect typical PMI rates for buyers with good credit (720–760 score) on fixed-rate conventional loans: $200,000 loan at 5% down (95% LTV): approximately $100–$175/month $200,000 loan at 10% down (90% LTV): approximately $65–$120/month $300,000 loan at 5% down (95% LTV): approximately $150–$265/month $300,000 loan at 10% down (90% LTV): approximately $100–$180/month $400,000 loan at 5% down (95% LTV): approximately $200–$355/month $400,000 loan at 10% down (90% LTV): approximately $130–$240/month $500,000 loan at 5% down (95% LTV): approximately $250–$440/month $500,000 loan at 10% down (90% LTV): approximately $165–$300/month Buyers with credit scores below 680 should expect rates at the higher end of these ranges. Buyers with 760+ scores typically pay rates at the lower end.
How to Find Your Exact PMI Rate
Your specific PMI rate is disclosed by your lender during the loan estimate process. The Loan Estimate form (provided within 3 business days of a loan application) includes a line item for mortgage insurance. If you are comparing multiple lenders, ask each one for their PMI rate at your specific LTV and credit score. PMI rates can vary between lenders because they use different PMI provider companies (MGIC, Genworth, Essent, Radian, and others). Shopping multiple lenders can sometimes reduce your PMI cost even when the interest rate is similar.
“The most useful framing for PMI cost I give buyers: think of it as the monthly cost of your down payment gap. If you are $30,000 short of 20% down on a $350,000 home, PMI costs you roughly $175–$250/month until you build that equity. The question is whether $175–$250/month is worth buying now vs renting and saving. In almost every market I work in, rent on a comparable property costs significantly more than PMI — meaning the buyer paying PMI is building equity for less per month than a renter building none.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
How much is PMI per month?
PMI typically costs 0.2–2% of the loan amount annually, most commonly 0.5–1.5%. Monthly PMI ranges approximately: $65–175/month on a $200K loan, $100–265/month on a $300K loan, $130–355/month on a $400K loan, and $165–440/month on a $500K loan. Your exact rate depends on your LTV, credit score, loan type, and lender. The Loan Estimate from any lender will show your specific PMI amount.
Does PMI go down over time?
No. Your PMI rate is fixed at loan origination and does not change as your balance decreases or your credit score improves. However, because PMI is calculated as a percentage of the outstanding loan balance, the dollar amount paid decreases very slightly each year as your balance decreases through normal amortization. The more significant event is cancellation when you reach 80% LTV — which ends PMI entirely.
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)