How Much Does PMI Cost Per Month?
Private mortgage insurance typically costs 0.3% to 1.5% of the original loan amount per year, paid monthly. On a $380,000 loan that is roughly $95 to $475 per month. Your position in the range depends on down payment size, credit score, loan type, and the insurer's pricing. Borrowers with 15% down and strong credit land near the bottom; borrowers with 3% down and fair credit land near the top.
PMI is quoted as an annual percentage, billed monthly, and the range is wide enough to matter: 0.3% to 1.5% of the original loan amount per year, according to the Consumer Financial Protection Bureau. On a $380,000 loan, the difference between the bottom and the top of that range is about $380 per month. Four factors decide where you land.
Factor 1: Down payment size
The loan-to-value ratio is the dominant pricing input. A borrower putting 15% down is far less risky to the insurer than one putting 3% down, and the rate card reflects it. Moving from 5% down to 10% down can cut the PMI rate nearly in half. This is the strongest argument for stretching the down payment when you are close to the next tier: the PMI savings compound with the smaller loan balance.
Factor 2: Credit score
Mortgage insurers use credit score bands much like lenders do. A borrower at 760 or above gets the best PMI pricing; each band down adds cost. The difference between excellent and fair credit can easily double the PMI rate. Because PMI is priced at origination and generally not repriced later, the credit score you bring to closing locks in your PMI cost for the life of the insurance. Improving your score before you apply is one of the highest-leverage moves in homebuying.
Factor 3: Loan type and term
Fixed-rate loans get better PMI pricing than adjustable-rate loans, reflecting the payment certainty. Fifteen-year loans price better than thirty-year loans. And loan program matters enormously: FHA mortgage insurance premium follows HUD's fixed schedule rather than private pricing, which is why FHA borrowers should compare the total insurance cost, not just the rate.
Factor 4: The insurer and lender
You do not choose the PMI company; the lender does. But lenders work with different insurers and apply different adjustments, so PMI quotes vary between lenders on otherwise identical loans. When you compare loan estimates, compare the mortgage insurance line too. A lender with a slightly higher rate but much cheaper PMI can be the better deal.
Worked examples
Take a $380,000 loan. At 0.3% per year, PMI costs $1,140 annually, or $95 per month. That is the profile of a strong borrower with 15% down and excellent credit. At 0.9%, the middle of the range, PMI costs $3,420 per year, or $285 per month. At 1.5%, the top, it costs $5,700 per year, or $475 per month, the profile of minimum down payment with fair credit. Over five years, the difference between the best and worst case exceeds $22,000, which is why the pricing factors deserve attention before closing.
Reducing the cost at origination
Three levers work before closing. Raise the down payment into the next loan-to-value tier. Raise the credit score into the next band, which can take as little as paying down card balances. And shop lenders on the full loan estimate including the PMI line. After closing, the levers are cancellation at 80%, the appraisal route after appreciation, and refinancing, all covered in our other guides.
PMI vs the alternatives
Some borrowers avoid monthly PMI with single-premium PMI, a lump sum at closing, or lender-paid PMI, a higher rate instead of a monthly charge. Single-premium can make sense if you will keep the loan long enough to beat the monthly version's total, but you lose the money if you refinance early. Lender-paid PMI cannot be cancelled, so the higher rate lasts the life of the loan. Monthly borrower-paid PMI remains the most flexible for anyone who expects to cancel within a few years.
Upfront, monthly, and single-premium structures
PMI comes in three payment structures with different economics. Monthly borrower-paid PMI, the default, spreads the cost and ends at cancellation, making it cheapest for borrowers who will cancel within a few years. Single-premium PMI is a lump sum at closing, often 1% to 2% of the loan, which can be cheaper in total for borrowers who will carry the insurance the full distance to 78%, since there is no monthly drag and no rate add-on. Lender-paid PMI hides the cost in a higher interest rate, typically 0.25% to 0.50% higher, and cannot be cancelled, making it the worst choice for anyone who would otherwise cancel early. Match the structure to your expected cancellation date: early cancellers want monthly, lifers want single-premium, and almost nobody wants lender-paid.
How to read a PMI rate card
Mortgage insurers publish rate cards as grids: loan-to-value bands down one axis, credit score bands across the other, with adjustments for loan term, property type, and occupancy. Find your cell at origination and you will see your rate. Two subtleties matter. First, the bands have cliffs: a 719 score can price meaningfully worse than a 720, so borrowers near a boundary should consider rapid rescoring before application. Second, the card is the insurer's price, but the lender chooses the insurer and may add adjustments, so identical borrowers get different quotes at different lenders. The card tells you what is possible; shopping tells you what is available.
PMI and the total cost of buying early
PMI is often framed as the cost of buying before you have 20% down, so price that decision honestly. On a $380,000 loan at 0.9%, PMI costs $285 per month, or $3,420 per year. Against that, weigh what waiting would cost: a year of rent, potential price appreciation while you save, and the mortgage interest deduction timing. For many buyers in appreciating markets, paying PMI for three years while the home gains value beats waiting, because appreciation builds equity faster than PMI drains cash. The expensive PMI is not the PMI you pay; it is the PMI you pay without a plan to end it.
Data current as of October 2026. PMI rules follow the Homeowners Protection Act of 1998 and CFPB guidance; FHA rules follow HUD. Confirm your loan's terms with your servicer.