Stop Paying PMI — Most Buyers Qualify Sooner Than They Think
PMI cancels at 80% LTV. With home appreciation + payments, many buyers reach 20% equity in 3–5 years. Or skip PMI entirely: use a piggyback loan (80-10-10) or put 20% down with down payment assistance. Compare lenders who offer $0 PMI options free in 60 seconds.
PMI Rates Chart 2026: How Much Does Conventional Loan Insurance Cost?
Private Mortgage Insurance (PMI) costs 0.17%–1.86%/year on conventional loans with less than 20% down. On a $350,000 loan, that's $50–$542/month. Your credit score is the #1 driver. Here is the complete 2026 rate chart plus exactly how to eliminate PMI.
0.17–1.86%
PMI Range (Annual)
$50–$542/mo
On $350K, 5% Down
80% LTV
PMI Cancels At
78% LTV
Auto-Cancel At
⚡ QUICK ANSWER — PMI Rate Lookup:
With 5% down and 700 credit score, PMI is approximately $146/month on a $350K loan (0.50%/year). With 760+ credit, PMI drops to $71/month. With 10% down and 720+ credit, PMI is $54/month. PMI cancels automatically when your balance hits 78% LTV — the full rate table by credit score is below.
PMI Rates Chart 2026: By Credit Score (5% Down)
Rates below are representative annual PMI percentages from major private mortgage insurers (Radian, MGIC, Arch MI) for a 30-year conventional loan with 5% down payment (95% LTV).
| Credit Score | Annual PMI Rate | $250K Loan/mo | $350K Loan/mo | $450K Loan/mo | Vs FHA MIP |
|---|---|---|---|---|---|
| 760+ | 0.17–0.25% | $35–$52 | $50–$73 | $64–$94 | 73% cheaper ✓ |
| 740–759 | 0.22–0.32% | $46–$67 | $64–$93 | $83–$120 | 70% cheaper ✓ |
| 720–739 | 0.33–0.44% | $69–$92 | $96–$129 | $124–$165 | 58% cheaper ✓ |
| 700–719 | 0.45–0.55% | $94–$115 | $131–$161 | $169–$206 | 40% cheaper ✓ |
| 680–699 | 0.56–0.67% | $117–$140 | $163–$196 | $210–$251 | 25% cheaper ✓ |
| 660–679 | 0.68–0.82% | $142–$171 | $198–$239 | $255–$308 | 10% cheaper ✓ |
| 640–659 | 0.83–1.01% | $173–$210 | $242–$294 | $311–$379 | About equal ≈ |
| 620–639 | 1.02–1.25% | $213–$260 | $298–$365 | $383–$469 | FHA cheaper ✗ |
| Below 620 | 1.26–1.86% | $263–$388 | $368–$543 | $473–$698 | FHA much cheaper ✗✗ |
* Rates from Radian, MGIC, and Arch MI as of June 2026. Actual rate depends on lender, insurer, and loan specifics. FHA MIP comparison uses standard 0.55%/year rate ($160/month on $350K loan).
PMI Rates Chart 2026: By Down Payment (720 Credit Score)
Higher down payment = lower PMI rate. Here's how putting more down reduces your PMI cost (assumes 720 credit score, $350,000 loan):
| Down Payment | LTV Ratio | Annual PMI Rate | Monthly Cost ($350K) | Years to PMI Cancellation |
|---|---|---|---|---|
| 3% down ($10,500) | 97% LTV | 0.58–0.70% | $169–$204 | ~8.5 years (appreciation helps) |
| 5% down ($17,500) | 95% LTV | 0.33–0.44% | $96–$129 | ~6 years |
| 7% down ($24,500) | 93% LTV | 0.28–0.38% | $82–$111 | ~4.5 years |
| 10% down ($35,000) | 90% LTV | 0.19–0.26% | $55–$76 | ~3 years |
| 15% down ($52,500) | 85% LTV | 0.11–0.17% | $32–$50 | ~1.5 years |
| 20% down ($70,000) | 80% LTV | N/A | $0 — No PMI! | Instant — No PMI |
Key insight: Going from 5% to 10% down saves $40–$53/month in PMI but requires $17,500 more upfront. Break-even: 330+ months — so paying PMI with 5% down is usually better than waiting to save 10% down. Compare lenders with the lowest PMI rates →
🚀 3 Ways to Avoid PMI in 2026
1. Piggyback Loan (80-10-10)
80% first mortgage + 10% HELOC + 10% down = $0 PMI. Works with 700+ credit.
2. Lender-Paid PMI (LPMI)
Lender pays PMI in exchange for slightly higher rate. Good if you plan to sell in 5 years.
3. Down Payment Assistance
Use state grants to reach 20% down. Some programs give $10K–$30K — making $0 PMI possible.
How to Cancel PMI in 2026: 4 Methods
Method 1: Wait for Automatic Cancellation
~7–10 yearsUnder the Homeowners Protection Act (HPA), your lender must automatically cancel PMI when your balance reaches 78% of the ORIGINAL purchase price based on scheduled payments. You do not need to request this — but you should verify it happens.
💡 Pro tip: Call your servicer when your balance approaches 80% LTV — they may cancel at 80% if you request it in writing.
Method 2: Request Cancellation at 80% LTV
~5–8 yearsWhen your scheduled payments bring your balance to 80% of original purchase price, you can REQUEST cancellation in writing. The lender must comply if you have a good payment history. This is 2 years faster than waiting for auto-cancellation.
💡 Requirements: Good payment history, written request, no junior liens, current on payments.
Method 3: New Appraisal (Appreciation Shortcut)
As fast as 2 yearsIf your home has APPRECIATED and you now have 20% equity based on CURRENT value, you can order a new appraisal and request PMI removal. This can happen much faster in rising markets. Many lenders require 2+ years of payments before allowing this path.
💡 Example: Bought for $350K with 5% down ($332,500 loan). Home is now worth $415K. Current LTV = 80%. PMI can be removed immediately!
Method 4: Refinance (If Rates Make Sense)
Whenever rates dropRefinancing into a new loan when you have 20%+ equity eliminates PMI permanently on the new loan. The 0.75% Rule: only refinance if you can lower your rate by 0.75%+ to justify closing costs. Even if rates are higher, removing PMI might still make refinancing worth it.
💡 Calculate: Monthly PMI savings vs. refinance closing costs. Typical PMI removal via refi pays back in 2–3 years.
PMI vs FHA MIP 2026: Which Is Cheaper?
The answer depends entirely on your credit score. Here's the crossover point:
| Credit Score | Conventional PMI (5% down) | FHA MIP (3.5% down) | Winner |
|---|---|---|---|
| 760+ | ~$71/mo (0.24%) | $161/mo (0.55%) | Conventional ✓✓ |
| 740–759 | ~$93/mo (0.32%) | $161/mo (0.55%) | Conventional ✓✓ |
| 720–739 | ~$118/mo (0.40%) | $161/mo (0.55%) | Conventional ✓ |
| 700–719 | ~$146/mo (0.50%) | $161/mo (0.55%) | Conventional ✓ |
| 680–699 | ~$184/mo (0.63%) | $161/mo (0.55%) | FHA ✓ |
| 660–679 | ~$222/mo (0.76%) | $161/mo (0.55%) | FHA ✓✓ |
| 620–659 | ~$305/mo (1.04%) | $161/mo (0.55%) | FHA ✓✓✓ |
Verdict: 700+ credit score → conventional with PMI is cheaper AND PMI cancels eventually. Below 680 → FHA is cheaper monthly, but FHA MIP lasts forever (unless 10%+ down). The 680 crossover is the key decision point. See the full FHA MIP chart →
Frequently Asked Questions: PMI Rates 2026
Q1.How much does PMI cost in 2026?
PMI costs 0.17%–1.86% of the loan amount annually, depending on your credit score, down payment, and loan term. On a $350,000 conventional loan with 5% down and a 700 credit score, PMI costs approximately $146/month (0.50%/year). With a 760+ credit score, the same loan has PMI of about $71/month (0.24%/year). PMI is eliminated once you reach 20% equity.
Q2.How do I cancel PMI in 2026?
You can cancel PMI when your loan balance drops to 80% of the original home value (LTV). You must request cancellation in writing — it does not happen automatically at 80% LTV. At 78% LTV, lenders are legally required to cancel PMI automatically under the Homeowners Protection Act. You can also get a new appraisal if your home has appreciated to reach 20% equity faster. Refinancing to a loan with 20%+ equity also eliminates PMI permanently.
Q3.Is PMI tax deductible in 2026?
The PMI tax deduction (treating PMI premiums as home mortgage interest) expired after 2021 and has not been renewed for 2026 as of this writing. Congress could extend it retroactively, but it is currently not available for tax year 2026. Check with a tax advisor for current status. VA funding fee and FHA MIP have different tax treatment.
Q4.Is PMI worth paying to buy sooner?
Often yes — especially in appreciating markets. Example: On a $400K home, PMI of $150/month costs $1,800/year. But if the home appreciates 4% ($16,000), you gained $14,200 net in year 1 even after PMI. Additionally, you build equity faster by buying now vs waiting to save for 20% down. Use our PMI break-even calculator: if your home appreciates at 3%+/year, paying PMI is usually worth it.
Q5.What is the difference between PMI and MIP?
PMI (Private Mortgage Insurance) applies to conventional loans with less than 20% down — it automatically cancels at 78% LTV. MIP (Mortgage Insurance Premium) applies to FHA loans — if you put less than 10% down, MIP lasts the ENTIRE life of the loan. FHA MIP has an upfront cost (1.75%) plus monthly (0.55%/year typical). Conventional PMI has no upfront cost but higher monthly rates for low credit scores. For credit scores 740+, conventional PMI is cheaper than FHA MIP.
Related Mortgage Insurance Guides
FHA MIP Chart 2026 (Our #1 Article)
FHA mortgage insurance: 1.75% upfront + 0.55%/year. Complete rate chart + when MIP cancels.
How to Remove PMI 2026: Cancel in 30 Days
Step-by-step guide to requesting PMI cancellation and saving $150–$300/month.
Best Mortgage Lenders 2026: Rates Compared
Compare lenders with the lowest PMI rates and fees on conventional loans.
VA Funding Fee Chart 2026
Eligible for VA loan? No PMI ever. VA funding fee: 2.15% first use, 0% if disabled.
Compare Lenders With the Lowest PMI Rates
PMI rates vary by lender — same credit score, same loan can have PMI as low as 0.17% or as high as 0.50% depending on which insurer your lender uses. Compare 300+ lenders to find the lowest PMI combination. Free, no SSN, instant results.
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