 TITLE: Do I Need Mortgage Insurance? CONTENT: How Much Does Mortgage Insurance Cost?\n--------------------------------------\nMortgage insurance costs vary depending on several factors, including the type of loan you have. Annual PMI costs on conventional loans average about 0.55% to 2.25% of the loan amount depending on your down payment, your credit and the lender. If you're not sure where your credit stands, find out your credit score to see how it could affect your PMI (and your loan's interest rate and terms).\nAnnual mortgage insurance rates on USDA loans are 0.35% of the loan amount, while they can range from 0.45% to 1.05% for FHA loans depending on your down payment. USDA and FHA loans also require an upfront payment, which is usually 1% and 1.75%, respectively.\nAs an example, if you buy a $300,000 home with a 5% down payment, you'll borrow $285,000. If you get a 4% interest rate and 30-year term, you may pay an additional $83 (0.35%) to $534 (2.25%) a month for the insurance premium. END