Estimate monthly PMI, annual mortgage insurance, and your 80%/78% LTV removal timeline. Compare down payment and credit scenarios to reduce PMI faster.
Add these for a fuller monthly payment and a more precise rate.
Estimates for conventional loans only and not financial advice. Your actual PMI rate is set by the mortgage insurer and depends on credit, coverage, and loan details. FHA loans use MIP with different rules. Cancellation requires you to be current on payments and to meet your servicer's conditions.
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Private Mortgage Insurance (PMI) can add hundreds to your monthly mortgage payment when your down payment is below 20%. This PMI calculator estimates monthly PMI cost, annual mortgage insurance, and your path to PMI removal based on loan-to-value milestones. Use it to compare down payment options, credit profile impact, and timelines to reduce PMI faster.
PMI is insurance that protects the lender — not you — on a conventional loan when your down payment is under 20% (loan-to-value above 80%). Under the federal Homeowners Protection Act, you can request cancellation once your balance reaches 80% of the home's original value (the lower of purchase price or appraisal at closing); your servicer must automatically end PMI at 78%; and it terminates at the loan's midpoint as a final backstop — provided you're current on payments. Your PMI rate depends on your loan-to-value ratio, credit score, and coverage, so this tool shows an estimate — your lender sets the actual rate. PMI is not the same as FHA mortgage insurance (MIP), which follows different rules.
PMI Formula
Estimate how much PMI raises your payment before you submit an offer.
Compare the upfront cash difference against the monthly PMI burden and expected removal timeline.
Estimate whether a refinance can remove PMI sooner based on current balance and value assumptions.
See how better credit assumptions may lower estimated PMI rates and total insurance cost.
Estimate when extra principal payments could accelerate your path to PMI removal.
See how PMI changes your monthly housing cost beyond principal, interest, taxes, and insurance.
Estimate your timeline to the 80% request, 78% automatic, and midpoint milestones so you can act at the right time.
Test 5%, 10%, 15%, and near-20% down scenarios to see the tradeoff between upfront cash and ongoing PMI.
Model how credit profile can affect PMI rate assumptions and long-term mortgage insurance cost.
PMI typically costs about 0.25% to 1.85% of your loan per year — roughly $30 to $70 a month per $100,000 borrowed, per Freddie Mac. On a $360,000 loan that is about $75 to $555 per month, driven mostly by your loan-to-value ratio and credit score.
On a conventional loan under the Homeowners Protection Act: you can request cancellation at 80% of the home's original value, your servicer must automatically cancel it at 78%, and it ends at the loan's midpoint as a final backstop — as long as you are current on payments.
Possibly. If your balance falls to about 80% of your home's current value through extra payments or appreciation, you can ask your lender to cancel PMI, but this usually requires a new appraisal and meeting seasoning rules (often 2 to 5 years).
No. PMI is associated with conventional loans, while MIP applies to FHA loans. They use different premium structures, cancellation rules, and loan program requirements.
The most common approach is a 20% down payment on a conventional loan. Some borrowers also consider lender-paid mortgage insurance, piggyback loan structures, or different loan products.
Yes. Stronger credit profiles usually qualify for lower PMI rates, while weaker profiles often pay higher premiums for the same LTV and loan structure.
It can. If a refinance brings your new LTV to 80% or lower on a conventional loan, PMI may no longer be required, subject to lender and product terms.
PMI deductibility can change by tax year and income phaseout rules. Check current IRS guidance and consult a qualified tax professional for your specific situation.