All the info above is well and good (and accurate), but I know you came here for some cold hard numbers. Our calculators include average monthly MI rates to help you get an overall sense of the cost of mortgage insurance. Let’s look at a scenario.
According to Zillow, the value of a typical home in the US was $355,852 as of July 2022. Let’s say you have good credit and $35,000 for a 10% down payment, and your interest rate is 5.5%. Entering this scenario into our buy now vs. wait calculator shows that MI would add $109 to your monthly mortgage payment. That’s nothing to sneeze at – but keep in mind that monthly PMI usually doesn’t last forever. Once you reach 20% equity in your home based on the original value, you can request PMI be canceled (in this example, you’d probably be able to cancel it in 4 or 5 years).
Changing any of the factors of the scenario above can change the MI rate you pay. For example, assuming all other variables above remain the same:
- If you have excellent credit instead of good credit, your MI rate could be $75 instead of $109
- If you put down $11,000 (about 3%) instead of $35,000 (about 10%), your MI rate could be $161 instead of $109
- If the home price is $250,000 instead of $355,000, your MI rate could be $54 instead of $109
I hope these numbers help you get an overall sense of what MI costs – but I want to stress again that the only way to know what MI might really cost in your specific situation is to talk to a lender.