Do You Need PMI in Massachusetts? How to Avoid It When Buying a Home in Quincy (2026)
Last updated: October 20, 2026
FRESHNESS: rate/stat-dependent (PMI price ranges and FHA premium rates; re-verify each quarter)
BUYER EDUCATION
Do You Need PMI in Massachusetts? How to Avoid It When Buying a Home in Quincy (2026)
November 4, 2026 | By Krista Recker
If you put down less than 20% on a conventional loan, you will pay private mortgage insurance, and it typically costs 0.46% to 1.50% of your loan amount per year. On a $670,000 Quincy home with 5% down, that is roughly $244 to $796 a month, and it falls away once you build enough equity or choose a loan structure that skips it.
I am a real estate salesperson, not a lender or financial advisor, so treat this as the framework and get a written quote from a Massachusetts loan officer before you decide.
Who this applies to
This is written for you if any of the following is true:
- You are a first-time buyer in Quincy who has $20,000 to $70,000 saved and wants to know whether waiting to reach 20% down is worth it.
- You are comparing a conventional loan, an FHA loan, and a Massachusetts program loan and want the monthly cost of each.
- You already own with PMI and want to know when and how to get rid of it.
- You are an investor or house hacker buying a 2 or 3 family and want to know how the down payment changes your insurance cost.
What is PMI and do you have to pay it in Massachusetts?
PMI is insurance that protects your lender, not you, if you stop paying a conventional loan. Massachusetts has no state rule that waives it, so the national rule applies: on a conventional loan with less than 20% down, your lender will require it. There are three ways around it. You can put down 20% or more, you can use a loan program that has no monthly mortgage insurance, or you can use a structure that replaces it with a slightly higher interest rate.
The insurance is arranged by your lender and billed inside your monthly payment. On most conventional loans you do not choose the insurer, but you can often choose how you pay for it, monthly or upfront.
How much does PMI cost on a Quincy home?
PMI generally runs 0.46% to 1.50% of the loan amount per year. Your rate depends mainly on your credit score and down payment. A score of 760 or higher may pay as little as 0.46%, while a score of 620 to 639 may pay up to 1.50%.
Here is what that looks like on a hypothetical $670,000 purchase, which is a typical single family price point in Wollaston and not a current listing:
| Down payment | Loan amount | Yearly PMI at 0.46% | Yearly PMI at 1.50% | Monthly range |
|---|---|---|---|---|
| 5% ($33,500) | $636,500 | $2,928 | $9,548 | $244 to $796 |
| 10% ($67,000) | $603,000 | $2,774 | $9,045 | $231 to $754 |
| 20% ($134,000) | $536,000 | $0 | $0 | $0 |
Figures checked against Experian's PMI cost guide (May 2026), which cites the Urban Institute for the 0.46% to 1.50% range, plus Consumer Financial Protection Bureau and federal Homeowners Protection Act guidance, MHP's ONE Mortgage guidelines, and IRS Publication 936 (2026), in October 2026. Your actual quote will differ, so ask for it in writing.
How do you avoid PMI without 20% down?
You have four realistic options in Quincy, and each trades PMI for something else.
- Choose a Massachusetts program loan. MassHousing loans and the ONE Mortgage (run by the Massachusetts Housing Partnership and offered through participating lenders) list no private mortgage insurance paid by the borrower, with as little as 3% down on a single family or condo, and 5% down on a three family. ONE Mortgage asks for at least 1.5% of the price from your own savings, a minimum credit score of 640 on a single family or condo (660 on a two or three family), income under program limits, and a homebuyer education class. MassHousing has its own separate income limits and rules, so ask both.
- Use a lender credit structure. Some lenders offer a loan with no monthly PMI in exchange for a higher interest rate, often 0.25% to 0.50% higher. Ask for the rate with PMI and the rate without it, side by side, over 7 years, not 30.
- Use a piggyback loan. A second mortgage covers part of the down payment so the first loan sits at 80% of price. You then pay interest on the second loan, which can be higher than the first, so compare the combined payment to the PMI payment.
- Put 20% down, or wait. At $670,000, that is $134,000. Waiting only helps if saving it does not cost you more in rising prices and rent than the PMI would.
How does PMI compare to FHA mortgage insurance?
FHA insurance usually costs more over the life of the loan than conventional PMI for buyers with good credit, and it often lasts longer. FHA charges an upfront premium of 1.75% of the loan, usually financed into the loan, plus an annual premium of 0.55% on loans up to $726,200 with under 5% down.
| Loan type | Down payment on $670,000 | Insurance cost | When it ends |
|---|---|---|---|
| Conventional with PMI | 5% ($33,500) | 0.46% to 1.50% per year, about $244 to $796 a month | Automatically at 78% of original value, or on request at 80% |
| FHA, 3.5% down | $23,450 | $11,315 upfront (financed) plus about $296 a month | Life of the loan with under 10% down, 11 years with 10% or more |
| MassHousing or ONE Mortgage | 3% ($20,100) | No borrower paid PMI, subject to income and credit rules | Not applicable |
| Conventional, 20% down | $134,000 | None | Not applicable |
The FHA figures use a $646,550 base loan, a 1.75% upfront premium, and a 0.55% annual premium. HUD sets these rates and can change them, so confirm them with your lender. FHA loan limits vary by county, so ask your lender for the current Norfolk County figure. For a conventional loan, Norfolk County's 2026 one-unit conforming limit is $962,550, so every loan in the tables above falls under it. Above that limit you are in jumbo territory, where PMI rules and pricing differ.
How do you get rid of PMI once you have it?
Your lender must cancel PMI automatically when your balance is scheduled to reach 78% of the home's original value, if you are current on payments. You can ask earlier, in writing, once you reach 80%. This comes from the federal Homeowners Protection Act and applies to conventional loans, not FHA, VA, or second mortgages.
Four routes get you there:
- Wait for the automatic cancellation date, which your lender must disclose at closing.
- Request cancellation in writing once your balance reaches 80% of the original value. Under the federal law you need a good payment history, no subordinate liens such as a home equity loan, and a property that has not declined in value.
- Ask for a new appraisal if your Quincy home has gained value or you have added value with improvements. Many lenders will cancel when the new appraisal shows your balance at 80% or less of current value, you usually pay for the appraisal, and lenders commonly want the loan to be at least 2 years old, sometimes 5.
- Refinance into a new conventional loan once you have 20% equity on a current appraisal. This only makes sense if the new rate is not meaningfully higher than your current one.
Is PMI tax deductible?
For 2026, it can be, if you itemize. The deduction for mortgage insurance premiums lapsed after the 2021 tax year and was reinstated by the One Big Beautiful Bill Act for tax year 2026, per IRS Publication 936 (2026). It phases out as your income rises, starting above $100,000 of modified adjusted gross income for joint filers and above $50,000 for married filing separately, and it only helps if you itemize instead of taking the standard deduction. Ask your tax preparer before you count on it, and do not build your budget around it.
The Bottom Line
PMI is an extra $244 to $796 a month on a 5% down purchase of a $670,000 Quincy home, and it is temporary, not permanent. The right question is not how to avoid it at any cost, but whether the rate trade or program loan costs less over the years you expect to own. Get written quotes for three structures, compare the 7 year total, and let the numbers decide.