PMI: Private Mortgage Insurance 2026 - Costs & How to Remove It
PMI: Private Mortgage Insurance 2026 - Costs & How to Remove It Paying PMI? It adds $100-$300/month to your mortgage — and protects the lender, not you. This guide explains what PMI is, how much it costs, and how to remove it as fast as possible. What Is PMI? Private Mortgage Insurance: insurance you pay when your down payment is less than 20% on a conventional loan. It protects the LENDER if you default — not you. You pay the premium, the lender gets the protection. PMI is required on conventional loans with less than 20% down. FHA loans have MIP (similar but different rules). VA loans have no PMI. USDA loans have an annual fee. How Much Does PMI Cost? Annual rate: 0.5% to 1.5% of the loan amount per year. Monthly cost examples: $200K loan: $83-$250/month. $300K loan: $125-$375/month. $400K loan: $167-$500/month. Factors: Down payment (less down = higher PMI), credit score (lower score = higher PMI), loan type, LTV ratio. Total cost: On a $300K loan with 10% down, you mig...