Short answer
On a $400,000 home at 6.5% with PMI at 0.5% a year, 5% down means about $158 a month in PMI for roughly 135 months (about $21,375). You can ask to cancel at 80% of the original value, it ends automatically at 78% if you are current, and it must end at the loan's midpoint.
1. What PMI costs
$400,000 home, 30-year fixed at 6.5%, PMI at 0.5% of the loan per year (PMI is typically in the range of 0.3 to 1.5% depending on your credit and down payment). PMI ends when the scheduled balance reaches 78% of the original value.
| Down payment | Loan | Monthly PMI | PMI ends after | Total PMI |
|---|---|---|---|---|
| 5% | $380,000 | $158.33 | 135 months | about $21,375 |
| 10% | $360,000 | $150.00 | 109 months | about $16,350 |
| 15% | $340,000 | $141.67 | 75 months | about $10,625 |
| 20% | $320,000 | None | n/a | $0 |
2. The three ways PMI ends
- 1You ask (80%). You can request cancellation when the scheduled balance is due to reach 80% of the original value, or earlier with extra payments. You must ask in writing, be current with a good payment history, have no junior liens, and may need an appraisal.
- 2Automatic (78%). The servicer generally must end PMI when the scheduled balance reaches 78% of the original value, if you are current.
- 3Midpoint. PMI must end the month after the midpoint of the amortization schedule (after 15 years on a 30-year loan), if you are current.
These rules apply to many single-family primary-residence loans closed on or after 29 July 1999. FHA and VA loans follow different rules. Original value is generally the lower of the price or the appraisal.
3. Cut the cost
- Put down more, even 15% instead of 10% saves about $5,700 in PMI here.
- Pay extra principal to reach 80% sooner.
- Compare lender-paid and borrower-paid options in a loan estimate.
Model your own price, down payment and PMI rate in the Mortgage Calculator, and see how a mortgage payment is calculated.
4. Frequently asked questions
When does PMI go away?expand_more
You can request cancellation at 80% of the original value, it ends automatically at 78% if you are current, and it must end at the midpoint of the loan term.
How much is PMI on a $400,000 home?expand_more
At 5% down and 0.5% a year, about $158 a month. At 10% down, about $150 a month.
Do extra payments remove PMI sooner?expand_more
Yes. Extra principal brings the balance to 80% of the original value sooner, and you can ask to cancel then.
Do FHA loans have PMI?expand_more
FHA loans have their own mortgage insurance premiums with different cancellation rules. These PMI rules apply to private mortgage insurance on conventional loans.