| Option | Typical Cost |
|---|---|
| Minimum / basic | $560–$1,120 |
| Standard | $1,050–$2,100 |
| Enhanced / comprehensive | $1,750–$3,500 |
| Premium / maximum | $2,800–$5,600 |
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| Down Payment | Annual PMI Rate | Monthly on $300K Loan |
|---|---|---|
| 3% down | 0.55–1.5% | $138–$375 |
| 5% down | 0.45–1.2% | $113–$300 |
| 10% down | 0.30–0.80% | $75–$200 |
| 15% down | 0.20–0.55% | $50–$138 |
PMI is required on conventional loans with less than 20% down and costs 0.2–1.5% of the loan annually. Unlike FHA mortgage insurance, conventional PMI automatically cancels at 78% LTV and can be removed by request at 80% LTV. This makes conventional loans cheaper long-term than FHA for most borrowers. To remove PMI faster: make extra principal payments, get a new appraisal if your home has appreciated significantly, or refinance once you hit 80% LTV. On a $300K loan, removing PMI saves $1,500–$4,500 per year. Some lenders offer lender-paid PMI (LPMI) where a slightly higher interest rate eliminates the separate PMI payment entirely — run the numbers both ways.
Pmi premiums are calculated from risk factors specific to your situation. Carriers weigh these factors differently, which is why quotes vary so widely. Your claims history, location, coverage limits, and deductible all interact to determine your rate.
The cheapest policy is not always the best value. Coverage exclusions, claim response times, and financial stability of the carrier matter when you actually need to file a claim. Check AM Best ratings for financial strength and J.D. Power for customer satisfaction before choosing based on price alone.