How Much Does Mortgage Insurance Cost

Mortgage insurance premiums will vary from case to case depending on the borrower’s loan program, loan amount, credit score, loan to value, and required lender coverage. Mortgage insurance companies are like banks in the way they price their policies. Policies are based on an individuals risk factors; the higher the risk, the higher the premium.

In most cases the annual cost is collected on a monthly basis. However some programs like FHA and VA will require an upfront premium collected at closing along with a monthly premium. Typically you can expect that most borrowers will fall between an annual premium of .50% and 1% of their total loan amount. While high end borrowers can see annual rates as low as .30% and low end borrowers as high as 1.10%


  • Loan Program: 30yr Fixed (360 Month Term)
  • Loan Amount: $200,000
  • Credit Score: 720+
  • Loan to Value: 90%
  • Required Lender Coverage: 25%, annual rate .49%


  • Annual Premium: ($200,000 * .49%) = $980
  • Monthly Premium: ($980 / 12 months) = $81.67


MGIC Rate card: Click Here

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