PMI Calculator: How Much Is Mortgage Insurance?

You can get a home loan with less than a 20% down payment, but you'll probably have to pay for mortgage insurance.
By NerdWallet 
Updated
Edited by Alice Holbrook Reviewed by Michelle Blackford

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Use the PMI calculator to see how much private mortgage insurance might cost for a conventional loan with less than a 20% down payment.

Need help filling out the calculator? Check out tips below in "PMI calculator help."

🤓Nerdy Tip

Many borrowers don’t mind paying for PMI if it means they can buy a house sooner. But if the added cost of PMI pushes you over your monthly budget, you may want to shop in a lower price range or postpone homebuying until you've saved a larger down payment.

How is PMI calculated?

The amount you'll pay for PMI depends on several factors, including the size of your loan, your down payment amount, debt-to-income ratio and credit score. The larger your down payment, the less your PMI will cost. Those with higher credit scores and lower debt-to-income ratios typically pay lower rates as well.

How much is PMI?

The average cost of private mortgage insurance, or PMI, for a conventional home loan ranges from 0.46% to 1.50% of the original loan amount per year, according to the Urban Institute's Housing Finance Policy Center. The amount varies in part by credit score. Borrowers with lower credit scores pay more for PMI than borrowers with higher credit scores. The calculator estimates how much you'll pay for PMI, which can help you determine how much home you can afford.

At those rates, PMI on a $300,000 mortgage would cost $1,380 to $4,500 per year, or $115 to $375 per month.

Average annual PMI premium

Your credit score

Annual average premium as a percentage of original loan amount

620-639

1.50%.

640-659

1.31%.

660-679

1.23%.

680-699

0.98%.

700-719

0.79%.

720-739

0.70%.

740-759

0.58%.

760 and above

0.46%.

Source: The Urban Institute's Housing Finance Policy Center.

PMI calculator help

  • Home price: For the most accurate results, base the amount you enter on the amount for which you've already been pre-qualified or preapproved. You can also enter your best guess of how much you can afford.

  • Down payment: This is the amount of cash you plan to pay upfront for the home.

  • Interest rate: If you don't yet have a personalized rate quote from a lender, use today’s average mortgage rate as an estimate.

  • Credit score: The annual cost of PMI varies according to your credit score and other factors. Don't know your score? NerdWallet offers a free credit score that updates weekly.

  • Loan term: The 30-year term is the most common, especially among first-time home buyers. With a 15-year mortgage, you'll pay off the loan faster and pay less interest, but you’ll have higher monthly payments.

Once you’ve entered everything, you should see the following results:

  • Estimated PMI rate.

  • Your monthly PMI cost.

  • How long you'll pay PMI.

  • Your monthly mortgage payment, including PMI.

  • The total cost of your loan over its full term.

You can also get a detailed version of results broken down by monthly and total costs. Just check the box of the option you’d like to see.

Frequently asked questions

Lenders usually require private mortgage insurance if you put down less than 20% on a conventional home loan. The insurance pays the lender a portion of the balance due in the event that you default on the loan. This enables lenders to take on the additional risk of accepting smaller down payments and gives more people the opportunity to become homeowners.

Your credit score, debt-to-income ratio and loan-to-value ratio, or LTV, can affect your PMI rate. Borrowers with low credit scores, high DTIs and smaller down payments will typically pay higher mortgage insurance rates. Building your credit score, paying down debt and putting down as much as you can afford may reduce your PMI costs.

Typically you'll need to make a 20% down payment to avoid PMI on a conventional mortgage. Even if private mortgage insurance is required to close your home loan, you can get rid of PMI later.

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