Financing
PMI Calculator.
Estimate your monthly PMI by credit score, see exactly when it drops off based on standard amortization, and the total cost over the life of the loan.
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PMI in plain terms
PMI is a tax on putting less than 20% down — and it ends.
Private mortgage insurance protects the lender, not you, in case you default. It's the price of buying a home with a smaller down payment, and on a conventional loan it goes away — usually around year 9 to 11 with standard amortization.
What determines your PMI rate
- Credit score: Strong credit (760+) lands closer to 0.5% annual; weaker credit (620–639) closer to 1.5%. The spread is large — a 100-point credit bump can save you $50–$120 per month on the same loan.
- Loan-to-value ratio: 5% down pays more PMI than 15% down, even at the same credit score, because the insurer is taking on more risk.
- Loan type: Standard PMI on Conventional loans differs from FHA's MIP. FHA's monthly MIP is 0.55% lifetime if down is under 10%, which is why long-hold FHA buyers often refinance.
The federal 78% rule
By federal law (Homeowners Protection Act of 1998), the lender must automatically cancel PMI when the scheduled loan balance reaches 78% of the original purchase price. You can request removal at 80% LTV. With a 10% down payment and standard 30-year amortization, the 78% threshold is typically reached in year 9 to 10. With 15% down, year 6 to 7. With 5% down, year 11+.
How to accelerate PMI removal
- Make extra principal payments. Each $1,000 in extra principal accelerates the timeline. The math compounds — early payments save the most because they reduce interest accrual.
- Request a new appraisal. If your home has appreciated meaningfully, you can request PMI removal based on current value rather than original price. Most lenders require 24 months of payments and a fresh appraisal at your expense ($400–$600). Worth it when appreciation is real.
- Refinance. If rates have dropped and you have 20%+ equity, refinancing simultaneously eliminates PMI and lowers your rate. Account for closing costs in the breakeven analysis.
Math check: on a $400K loan with 0.85% PMI ($283/mo), if PMI removes at month 113 instead of 130, that saves $4,800 — well worth a $500 appraisal request once equity is real.
FAQ
Common questions about pmi calculator.
How is PMI different from FHA mortgage insurance?
PMI is private; it covers Conventional loans and ends when LTV reaches 78%. FHA mortgage insurance is government-backed and structured differently — there's a 1.75% upfront premium financed into the loan, plus monthly MIP at 0.55% annual. Critically, FHA monthly MIP lasts the life of the loan if down payment is under 10%, while Conventional PMI ends. This is why many FHA buyers refinance to Conventional once they hit 20% equity.
Can I get PMI removed before the 78% threshold?
Yes — at 80% LTV, you can request removal in writing. The lender may require a current appraisal at your cost, 24 months of payment history, and clean recent payment history. If your home has appreciated, an appraisal-based request can shave years off the timeline.
Does PMI tax-deductibility still exist?
PMI deductibility expired for tax year 2022 federally. State rules vary. Don't factor it into your decision unless legislation changes.
What about lender-paid PMI (LPMI)?
Lender-paid PMI bundles the cost into a higher interest rate instead of a separate monthly line item. It can look attractive on the disclosure but typically costs more over the long run because the higher rate doesn't go away when LTV hits 78%. Usually only worthwhile for buyers planning short holds.
Is paying upfront PMI (single-premium) worth it?
Sometimes. Single-premium PMI replaces monthly PMI with a one-time payment at closing, often financed into the loan. The math works when you plan to keep the loan long enough to amortize the upfront cost — typically 5+ years. Ask your lender for both options on the loan estimate.
How much can I save by improving my credit before applying?
On a $400K loan, moving from a 660 FICO (1.15% PMI) to a 740 FICO (0.65% PMI) saves about $167/month. Over the typical 10-year PMI life, that's $20,000. Three months of credit work before applying often returns more than any other single improvement.
Keep going
Related calculators.
Next step
Compare PMI economics across loan structures.
PMI on Conventional ends; FHA monthly MIP often doesn't. The structural difference is worth modeling over your real hold period.