How Much Does PMI Cost Per Month in 2026? Real Numbers

TL;DR: In 2026, private mortgage insurance (PMI) typically costs between $30 and $70 per month for every $100,000 you borrow, which works out to an annual rate of roughly 0.36% to 0.84% of your loan amount. A borrower with a $350,000 loan, a 660 credit score, and 5% down might pay around $215 a month, while a borrower with 15% down and a 760 score could pay closer to $85. PMI drops automatically once you reach 78% loan-to-value, but you can often request removal at 80%.

_Last reviewed: August 2026 · 7 min read_

If you put down less than 20% on your last mortgage, you've probably noticed a line item on your statement that doesn't shrink your loan balance at all. That's PMI, and most homeowners never learn exactly what drives the price or when they can finally drop it.

Okoniq Property Hub tracks your loan-to-value ratio and flags the month you cross the 80% and 78% thresholds, so you know exactly when to request PMI removal instead of guessing.

What determines how much PMI costs per month?

Your PMI rate is set mostly by two numbers: your credit score and your down payment size. Lenders price PMI as an annual percentage of your loan balance, then divide by 12 for your monthly bill.

In 2026, typical annual PMI rates range from about 0.36% to 0.84% of the loan amount. On a $300,000 loan, that's $90 to $210 a month. A borrower with a 760+ credit score and 10% down might land near the low end, around $95 a month. Someone with a 620 score and only 5% down could see $230 or more. The gap between good and poor credit on PMI pricing is often larger than people expect, sometimes double the monthly cost for the same loan size. For a full breakdown of how the calculation works and when coverage ends, see how PMI works and when it drops.

How does down payment size change the monthly PMI bill?

Every percentage point closer to 20% down lowers your PMI rate, sometimes significantly. Lenders view a 15% down payment as meaningfully less risky than 3%, and they price accordingly.

Here's a rough comparison on a $350,000 loan with a 700 credit score:

| Down Payment | Loan-to-Value | Est. Annual PMI Rate | Est. Monthly PMI | |---|---|---|---| | 3% down | 97% | 0.75% | ~$219 | | 5% down | 95% | 0.65% | ~$190 | | 10% down | 90% | 0.50% | ~$146 | | 15% down | 85% | 0.35% | ~$102 |

The jump from 3% to 15% down cuts the monthly PMI bill roughly in half in this example. If you're weighing FHA against a conventional loan with less down, the mortgage insurance structure differs enough that it's worth comparing side by side in FHA vs conventional for first-time buyers, since FHA's mortgage insurance premium doesn't always cancel the same way PMI does.

When does PMI automatically go away, and can you remove it sooner?

Federal law requires PMI to end automatically once your loan balance hits 78% of the home's original value, based on your amortization schedule. You can also request cancellation earlier, once you hit 80% loan-to-value, as long as you're current on payments and meet the lender's conditions.

On a $320,000 loan, reaching 80% LTV might take 8 to 10 years under a standard schedule. But if your home has appreciated, you may hit that number much faster, sometimes in 2 to 4 years, without paying down much principal at all. Lenders won't chase you down to tell you this. You have to request a new appraisal and submit the cancellation paperwork yourself. For strategies to get there faster, including extra principal payments and appraisal timing, see how to remove PMI faster. Understanding your amortization schedule also helps you spot the exact month your balance crosses each threshold.

Is paying for PMI ever worth it compared to waiting to buy?

Yes, in many cases, because PMI is often cheaper than a year of rising rent or home prices. A borrower paying $150 a month in PMI for three years spends $5,400 total, which is frequently less than the cost of waiting and buying the same home at a higher price and rate later.

The math shifts based on how fast home values in your area are climbing. If prices are rising 4-5% a year, waiting to save a 20% down payment can cost more in appreciation than the PMI you'd pay by buying now with less down. Some buyers also use mortgage points to lower their rate instead of avoiding PMI, which can be a better trade depending on how long you plan to stay in the home. If you're unsure whether refinancing later to drop PMI and get a better rate makes sense, run the numbers through a refinance break-even calculation before committing.

What if my PMI shows up as a lump sum instead of monthly?

Some lenders offer single-premium PMI, where you pay one upfront fee at closing instead of a monthly charge. This can range from 1.5% to 4% of the loan amount, often financed into the loan itself, which raises your monthly principal and interest payment slightly instead of adding a separate PMI line.

This option makes sense mainly if you plan to stay in the home long enough to make the upfront cost worthwhile, typically 5+ years. If you might sell or refinance sooner, monthly PMI is usually the safer bet since you're not locking in a cost you can't recover.

FAQ

How much is PMI on a $400,000 loan?

Monthly PMI on a $400,000 loan typically runs between $120 and $280, depending on credit score and down payment, with better-credit borrowers at higher down payments landing near the low end.

Does PMI go up if my credit score drops after closing?

No. PMI is priced at the rate locked in when your loan closed, based on your credit score and down payment at that time. A later credit score change doesn't retroactively adjust your PMI rate on the same loan.

Can I avoid PMI entirely with 10% down?

Sometimes, through a piggyback loan structure like 80-10-10, where a second loan covers part of the down payment gap. This avoids PMI but adds a second monthly payment with its own interest rate, so compare total costs before choosing it.

Is PMI tax deductible in 2026?

PMI deductibility has been inconsistent year to year in the tax code, and its status depends on current federal law and your income level. Talk to a CPA about whether it applies to your specific return.

Does FHA mortgage insurance work the same way as PMI?

No. FHA loans use a mortgage insurance premium (MIP) that often lasts for the life of the loan if you put down less than 10%, unlike conventional PMI which cancels once you reach 78-80% loan-to-value.

This is educational information, not financial or tax advice. Talk to a CPA about PMI deductibility and consult your loan servicer directly for the exact cancellation requirements on your mortgage.