Mortgage Guide
PMI on a $300,000 House: What You'll Pay Monthly
Last updated: September 2026
Private Mortgage Insurance (PMI) is the silent cost that turns an affordable monthly payment into a budget stretcher. If you are buying a $300,000 house and putting down less than 20%, you will pay PMI — and it adds up faster than most buyers expect.
This guide breaks down exactly what PMI costs on a $300,000 home, when it goes away, and how to calculate it yourself before you ever talk to a lender.
What Is PMI?
PMI protects the lender, not you. If you put down less than 20% on a conventional loan, the lender requires PMI because you are statistically more likely to default. You pay the premium; the lender gets the protection.
The good news: PMI automatically cancels once your loan balance drops to 78% of the original home value. You can also request cancellation at 80%.
PMI Cost on a $300,000 House (By Down Payment)
PMI is typically calculated as an annual percentage of your loan amount, then divided into monthly payments. The rate depends on your credit score, loan term, and down payment size, but the national average ranges from 0.3% to 1.2% annually.
Example Scenarios
| Down Payment | Loan Amount | Est. PMI Rate | Annual PMI | Monthly PMI |
|---|---|---|---|---|
| 3% ($9,000) | $291,000 | 0.90% | $2,619 | $218 |
| 5% ($15,000) | $285,000 | 0.75% | $2,138 | $178 |
| 10% ($30,000) | $270,000 | 0.55% | $1,485 | $124 |
| 15% ($45,000) | $255,000 | 0.40% | $1,020 | $85 |
| 20% ($60,000) | $240,000 | 0% | $0 | $0 |
Rates are estimates for a 30-year fixed mortgage with a 700 credit score. Your actual rate will vary by lender and credit profile.
The Real Cost Over Time
That $218/month PMI on a 3% down payment does not feel like much until you multiply it:
- Year 1: $2,616
- Year 5: $13,080
- Until cancellation (~Year 9): ~$20,000+
That is $20,000 that does not go toward principal, interest, or equity. It is purely an insurance cost.
When Does PMI Go Away?
On a conventional loan, PMI cancellation follows two rules:
- Automatic termination: Your lender must cancel PMI when your loan balance reaches 78% of the original home value — roughly $234,000 on a $300,000 purchase.
- Borrower-requested cancellation: You can request cancellation at 80% — roughly $240,000 — but the lender may require an appraisal to confirm your home has not lost value.
How long does that take? It depends on your down payment and whether you make extra principal payments.
| Down Payment | Years Until 80% LTV (No Extra Payments) | Years Until 80% LTV (Extra $100/Month) |
|---|---|---|
| 3% | ~9.5 years | ~7.5 years |
| 5% | ~8.5 years | ~6.5 years |
| 10% | ~6 years | ~4.5 years |
| 15% | ~3 years | ~2 years |
How to Calculate Your Exact PMI
The fastest way to get your real number is to use a mortgage calculator that includes PMI as an input — not just principal and interest.
Try it now: Use our free mortgage calculator to enter your $300,000 home price, your planned down payment, and an estimated PMI rate. The calculator will show you:
- Your total monthly payment (P + I + PMI + taxes + insurance)
- Your exact amortization schedule
- The month and year your PMI drops off
- How much extra payments accelerate PMI cancellation
How to Avoid PMI Entirely
- Put down 20% — The simplest, but not always realistic.
- Piggyback loan (80/10/10) — Take a 10% second mortgage to cover the gap. The second loan has a higher rate, but the combined payment is often lower than PMI.
- Lender-paid PMI (LPMI) — The lender pays PMI in exchange for a higher interest rate. You pay more interest forever, but there is no separate PMI line item.
- VA loan — If you are eligible, VA loans have no PMI and no down payment requirement.
Bottom Line
On a $300,000 house, PMI ranges from $85 to $218 per month depending on your down payment and credit score. Over the life of the loan, that is tens of thousands of dollars — enough to fund a kitchen renovation or a year of college tuition.
Before you commit to a down payment, run the numbers. Use a calculator that shows PMI, taxes, insurance, and the full amortization schedule so you know exactly what you are signing up for.