The short answer
PMI usually costs about 0.3% to 1.5% of your loan amount per year, paid monthly. On a $400,000 home with 10% down, that's $90 to $450 a month, and $9,810 to $49,050 in total before it cancels automatically. Where you land in that range depends mostly on your credit score and down payment. The single best way to pay less is to get rid of it sooner.
The range, in real dollars
Picture a family buying a $400,000 home with 10% down. Their loan is $360,000 at 6.5%. Here's what PMI could cost them across the usual range:
| Yearly PMI rate | Monthly PMI | Total until it ends automatically |
|---|---|---|
| 0.3% | $90 | $9,810 |
| 0.5% | $150 | $16,350 |
| 0.75% | $225 | $24,525 |
| 1.0% | $300 | $32,700 |
| 1.5% | $450 | $49,050 |
Same house, same loan. A $39,000 difference in total PMI, decided mostly by the borrower's credit and the insurer's pricing. The totals assume PMI runs until the balance is scheduled to hit 78% of the original value, about 9 years and 1 month on this loan.
How down payment changes the bill
A bigger down payment helps twice. The loan is smaller, so each PMI dollar is calculated on less. And the loan reaches the cancellation point years sooner.
Here's a $400,000 home at 6.5% with PMI at 0.5%:
| Down payment | Loan | Monthly PMI | PMI ends automatically | Total PMI |
|---|---|---|---|---|
| 5% | $380,000 | $158 | 11 years, 3 months | $21,375 |
| 10% | $360,000 | $150 | 9 years, 1 month | $16,350 |
| 15% | $340,000 | $142 | 6 years, 3 months | $10,625 |
In real life the gap is even wider, because insurers usually charge a lower rate for 15% down than for 5% down. Our table holds the rate steady to show the effect of time alone.
Curious when your own PMI ends? A free payoff projection maps it out.
What drives your PMI rate
Credit score. This is the biggest lever. Borrowers with excellent credit can pay a fraction of what borrowers with fair credit pay for the same loan.
Down payment. The closer you are to 20%, the less risk the insurer takes.
Loan details. Shorter terms, fixed rates, and smaller loans tend to price lower. Loans for investment properties price higher.
The type of PMI. Monthly, single premium, lender-paid, and split options all price differently. We explain each in how PMI works.
How to pay less PMI
Shop it. Different lenders work with different mortgage insurers, and quotes can vary. Ask each lender for the PMI amount, not just the rate.
Improve your credit before you buy. Even a modest jump in your score can lower your premium for years.
Put down a little more. Moving from 5% to 10% down lowers both the monthly charge and the number of years you'll pay it.
Get rid of it sooner. This is where most of the savings are. Extra payments, a new appraisal, or simply requesting cancellation at 80% instead of waiting for 78% can save thousands. See how to get rid of PMI early.
Is PMI worth it?
It's easy to look at $16,350 and decide PMI is a waste. Sometimes it is. Often it isn't.
For many families, the alternative to PMI is years more of renting while saving toward 20%. If home prices rise during those years, the house costs more when you finally buy. If you'd pay rent the whole time, that money builds nothing. PMI is the price of starting sooner.
What matters is not paying it a day longer than you need to. And not confusing it with protection for your family. PMI pays the lender. If you want coverage that keeps your family in the house, that's mortgage protection.
FHA loans cost differently
FHA loans have their own mortgage insurance, MIP, with an upfront charge of 1.75% of the loan and an annual premium that often lasts for the life of the loan. Compare the two in PMI vs. FHA mortgage insurance.
Once it's gone
When PMI comes off, you keep that money every month. Sent to principal, it can cut years off the loan. And if you'd like to go further, Ridgewell's Mortgage Accelerator Program is designed to help qualifying households pay off a home in as little as 5 to 7 years.
Payoff timelines are illustrations for qualifying households and are not guaranteed.
Where to start
Find your PMI amount on your mortgage statement and divide it by your original loan amount, then multiply by 12. That's your yearly PMI rate. If it's on the high end, every month you remove sooner is worth more.
For every way out, see PMI explained. To see your own timeline, get a free payoff projection.
Examples assume a $400,000 home and a 30-year fixed mortgage at 6.5%, with PMI calculated on the original loan amount, figures rounded. Actual PMI pricing varies by lender and insurer. This is not tax advice.
