Private mortgage insurance in South Carolina typically costs between 0.5% and 1.5% of your loan balance per year. On a loan near the state’s average home value of about $298,316, that works out to roughly $115 to $355 added to your monthly mortgage payment. Where you land in that range depends mostly on your credit score, your down payment, and the type of loan you choose.
What PMI Costs on a $300,000 South Carolina Home
PMI is calculated as a percentage of your loan balance, not the home’s purchase price, so a bigger down payment lowers the dollar cost two ways: smaller loan, lower rate.
Take a $300,000 home with 5% down. You’d borrow $285,000. At the low end of 0.5%, PMI costs about $1,425 a year, or roughly $119 a month. At 1.0%, that climbs to $2,850 a year ($237 monthly). At 1.5%, you’re paying $4,275 a year, or about $356 a month on top of principal and interest.
Put 10% down on that same house and the loan drops to $270,000. The annual rate also typically moves toward the lower end of the range, so the dollar hit falls on both sides of the equation.
Your lender splits the annual premium into twelve monthly installments and bundles it into your mortgage payment alongside principal, interest, taxes, and homeowner’s insurance. PMI appears as its own line on your Loan Estimate and your monthly statements, so the cost is never hidden.
What Determines Your PMI Rate
The spread between 0.5% and 1.5% is huge over the life of a loan. Three factors do most of the work.
Credit score. This is the single biggest lever. Borrowers above 760 consistently see the lowest rates. Someone near the 620 floor for conventional loans pays substantially more. Below 620, most conventional lenders won’t approve the loan at all, which pushes buyers toward FHA or other government-backed programs with their own insurance structures.
Loan-to-value ratio. A 97% LTV (3% down) carries a higher premium than a 90% LTV (10% down). Every point of equity you bring reduces the insurer’s exposure and your rate with it.
Loan type. Fixed-rate 30-year mortgages tend to receive lower PMI rates than adjustable-rate loans, because a steady payment is easier for the insurer to model.
Your specific quoted rate appears on the Loan Estimate your lender must send within three business days of receiving your application. That makes it straightforward to compare offers.
How You Pay PMI
The monthly premium rolled into your mortgage payment is the default, but it isn’t the only way to handle it.
- Monthly premiums. The standard setup. Lower closing costs, ongoing charge.
- Single upfront premium. Pay the whole PMI cost in a lump sum at closing. No monthly charge at all. Can make sense if you plan to stay in the home for many years and have the cash.
- Split premium. A portion at closing, a reduced amount each month. Lower ongoing payment without the full upfront cash hit.
- Lender-paid PMI. The lender covers the insurance but raises your interest rate for the life of the loan. No PMI line on your statement, but the higher rate is permanent, even after you reach 20% equity. Borrower-paid PMI goes away once you hit the equity threshold; lender-paid doesn’t, unless you refinance.
Run the numbers on borrower-paid versus lender-paid before signing. The lower-looking monthly payment on a lender-paid loan can easily cost more over ten or fifteen years.
When PMI Comes Off Your Loan
Federal law under the Homeowners Protection Act gives you clear rights to end PMI, and your servicer cannot ignore them.
Request Cancellation at 80% Equity
You can ask your servicer to cancel PMI once your loan balance is scheduled to reach 80% of the home’s original purchase price under your amortization schedule. The request must be in writing, and you have to meet four conditions: current on payments, a good payment history, evidence that the home’s value hasn’t dropped below the original, and no second lien on the property.1Office of the Law Revision Counsel. 12 USC 4902 – Termination of Private Mortgage Insurance
“Good payment history” has a specific meaning. No payments 60 or more days late in the first 12 months of the two-year period before your request, and no payments 30 or more days late in the 12 months immediately before it.2Consumer Financial Protection Bureau. CFPB Consumer Laws and Regulations HPA – Homeowners Protection Act Procedures One late payment at the wrong time can push your cancellation date back by months.
Automatic Termination at 78% Equity
Even if you never ask, your servicer must automatically terminate PMI once your scheduled loan balance hits 78% of the original value, as long as you’re current on payments. If you’re behind on the termination date, coverage drops off the first month after you catch up.1Office of the Law Revision Counsel. 12 USC 4902 – Termination of Private Mortgage Insurance
Early Removal Through Home Value Growth
The thresholds above use the home’s original purchase price. South Carolina’s housing market has seen real appreciation in many areas, and if your home has gained value, Fannie Mae’s servicing guidelines let you remove PMI based on a new appraisal:
- Owned the home two to five years: current LTV must be 75% or lower.
- Owned more than five years: current LTV must be 80% or lower.
- Made substantial improvements (kitchen remodel, bathroom overhaul, added square footage, not routine maintenance): the two-year seasoning requirement can be waived if your LTV is 80% or lower.3Fannie Mae. Termination of Conventional Mortgage Insurance
You’ll need a valuation that includes both interior and exterior inspection. A standard single-family appraisal in South Carolina generally runs $300 to $600, depending on property type and location. If the appraisal saves you years of monthly premiums, the math usually tips heavily in your favor.
Ways to Avoid PMI From the Start
The cleanest way to skip PMI on a conventional loan is 20% down. On a $300,000 South Carolina home, that’s $60,000 at closing. A high bar, but it ends the question.4Consumer Financial Protection Bureau. What Is Private Mortgage Insurance?
A piggyback loan is the next option. The classic 80/10/10 structure uses a first mortgage for 80% of the price, a second mortgage (often a HELOC) for 10%, and a 10% cash down payment. Because the first mortgage sits at 80% LTV, no PMI is required. The second mortgage carries a higher interest rate, so you’re trading PMI for added interest cost. Compare the total monthly numbers before committing.
If you qualify for a VA-backed loan, there is no monthly mortgage insurance at all, regardless of your down payment. The only insurance-like cost is a one-time funding fee at closing, which can be rolled into the loan balance.5Veterans Affairs. VA Funding Fee And Loan Closing Costs
South Carolina also runs programs that can push your down payment higher without draining your savings. The Palmetto Home Advantage program offers forgivable down payment assistance across all 46 counties, with a household income limit of $137,500, and it works with conventional, FHA, VA, and USDA loans. The Palmetto Heroes program adds $10,000 in forgivable assistance for public service workers like teachers, law enforcement, and first responders.6South Carolina Housing. Programs for Homebuyers Either program can either eliminate PMI outright or move you toward the lower end of the rate range.
A Note on FHA and VA Loans
PMI only applies to conventional loans. FHA loans carry a different product called a mortgage insurance premium, charged in two layers: an upfront premium at closing and an annual premium rolled into your monthly payment. For FHA loans originated after June 2013 with less than 10% down, the annual premium never cancels automatically, no matter how much equity you build. The only exit is to refinance into a conventional loan. With at least 10% down on an FHA loan, the annual premium drops off after 11 years of on-time payments.
So an FHA loan with 3.5% down compared against a conventional loan with 5% down often costs more in the long run, because conventional PMI can be canceled and FHA insurance generally can’t.