PMI Rate

Annual Private Mortgage Insurance rate as a percentage of the loan amount.

Example Result

Sample Data

0.00%

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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PMI Rate Formula

User Input (%)

User Input (%)

0.00%

Where to Find This Value

Here's where you can find the value for PMI Rate:

Lender Disclosure

Your lender discloses the PMI rate on the Loan Estimate (if down payment < 20%)

Mortgage Statement

Your monthly mortgage statement shows the PMI premium amount

Used to Calculate

PMI Rate is used as an input for these calculations:

Monthly PMI

Debt Metrics

Why It Matters

PMI is an expense that provides zero benefit to the borrower — it only protects the lender. On a $320,000 loan with a 0.5% PMI rate, you pay $1,600/year ($133/month) with no equity return. Plan to either put 20% down to avoid PMI or have a strategy to reach 20% equity quickly through appreciation or principal paydown.

Detailed Explanation

PMI Rate is the annual cost of Private Mortgage Insurance expressed as a percentage of the loan amount. PMI is required when the down payment is less than 20% of the purchase price. Typical rates range from 0.3% to 1.5% depending on credit score, loan-to-value ratio, and loan type. The monthly PMI cost equals (PMI Rate × Loan Amount) ÷ 12. PMI can usually be removed once equity reaches 20%.