Who sets conventional PMI rates?

Private mortgage insurance companies set the rates. The major insurers are MGIC, Radian, Essent, Enact, Arch, and National MI. Lenders typically have relationships with 2 to 4 insurers and quote the most competitive rate. Borrowers may request quotes from multiple insurers through their lender.

How is monthly PMI calculated?

Monthly PMI is the annual rate times the loan balance divided by 12. For a $285,000 loan at 0.50 percent annual PMI, monthly PMI is $285,000 times 0.005 divided by 12 equals $118.75 per month. The rate stays constant; the dollar amount declines as principal amortises.

Can I get PMI removed by paying down principal?

Yes. Per HPA 12 USC 4902, borrowers may request PMI removal at 80 percent LTV. Automatic cancellation happens at 78 percent LTV based on original amortisation schedule. Removal earlier requires a borrower-paid appraisal showing current value supports 80 percent LTV, accepted only after 2 years of payments on most lenders.

Conventional PMI Rates by Credit Score (2026)

Borrower-paid PMI for conventional loans is priced by FICO band and LTV. Below is the typical mid-2026 rate card from major insurers (MGIC, Radian, Essent, Enact). Your lender may quote slightly different numbers depending on the insurer they use.

PMI annual rate grid (typical, mid-2026)

FICO	97 LTV (3% down)	95 LTV (5% down)	90 LTV (10% down)	85 LTV (15% down)
760+	0.25 to 0.35%	0.20 to 0.30%	0.17 to 0.25%	0.13 to 0.19%
740 to 759	0.35 to 0.45%	0.30 to 0.40%	0.22 to 0.30%	0.17 to 0.23%
720 to 739	0.45 to 0.55%	0.35 to 0.50%	0.28 to 0.36%	0.21 to 0.27%
700 to 719	0.55 to 0.70%	0.45 to 0.60%	0.36 to 0.45%	0.27 to 0.34%
680 to 699	0.70 to 0.90%	0.55 to 0.75%	0.45 to 0.58%	0.33 to 0.43%
660 to 679	0.85 to 1.10%	0.70 to 0.95%	0.55 to 0.75%	0.42 to 0.55%
640 to 659	1.05 to 1.35%	0.85 to 1.15%	0.68 to 0.90%	0.50 to 0.65%
620 to 639	1.30 to 1.70%	1.10 to 1.50%	0.85 to 1.15%	0.65 to 0.85%

Rates are typical, not guaranteed. HomeReady and Home Possible eligible borrowers may receive lower rates (often around 0.40 to 0.55% at 95 LTV regardless of FICO above 680).

Fannie Mae LLPA overlay (often bigger than PMI cost)

Loan-Level Price Adjustments (LLPAs) from Fannie Mae and Freddie Mac add cost at lower FICO and higher LTV. They are paid as points at closing or as a rate add. The published LLPA matrix in effect February 2026 (selected entries):

FICO	LTV under 60	LTV 60.01 to 80	LTV 80.01 to 95	LTV 95.01 to 97
760+	0.000	0.375	0.500	0.500
740 to 759	0.000	0.500	0.625	0.625
720 to 739	0.125	0.625	0.875	0.875
700 to 719	0.250	1.000	1.250	1.250
680 to 699	0.500	1.250	1.500	1.500
660 to 679	0.875	1.500	1.750	1.750
640 to 659	1.125	1.875	2.125	2.125
620 to 639	1.500	2.250	2.625	2.625

LLPAs are in points. 1.00 point typically converts to roughly 0.20 percentage points of rate. So a 1.500 LLPA at 700 to 719 FICO and 90 LTV is roughly 0.30 percent on the rate. At 620 to 639 FICO and 95 LTV, the 2.625 LLPA adds roughly 0.52 percent. HomeReady and Home Possible cap LLPAs which is why those programmes can save 0.50 to 1.00 percent at lower FICO bands.

Borrower-paid vs lender-paid PMI

Borrower-paid monthly (BPMI). Standard. Premium paid monthly with the mortgage payment. Cancellable per HPA at 78% LTV.
Single-premium PMI (financed). One-time premium of roughly 1.0 to 1.6% of loan amount, paid at closing or financed. Cannot be cancelled but is gone if you refinance.
Lender-paid PMI (LPMI). Lender pays the insurer in exchange for charging you a higher rate (typically 0.20 to 0.30% rate add). Cannot be cancelled without refinancing.
Split-premium PMI. Combine an upfront chunk (0.50 to 1.00%) with a reduced monthly amount. Useful when seller credits cover the upfront.

Rate disclaimer

PMI rates and LLPAs change. The published Fannie Mae LLPA matrix is updated periodically. Consult a licensed loan officer for current rates.

Sources

Fannie Mae LLPA Matrix: singlefamily.fanniemae.com/media/9391
Freddie Mac Credit Fee Matrix: freddiemac.com/credit-fees
MGIC rate cards: mgic.com/rates
HPA 12 USC 4902: 12 USC 4902