Mortgage Calculator With PMI

What PMI is — and who it protects

Private Mortgage Insurance covers the lender, not you. When your down payment is under 20% (loan-to-value above 80%), the lender requires it to protect itself against a default. You pay the premium monthly, on top of your mortgage payment, and the bank collects the benefit.

Cost runs as an annual percentage of the loan amount, typically 0.3%–1.5%, set by three things:

1. Your down payment (LTV). The biggest factor — 5% down can cost two to three times what an 80.01% LTV loan pays.
2. Your credit score. At the same LTV, a 760 and a 660 can be quoted rates a full multiple apart.
3. Insurer and occupancy. Primary residence is cheapest; investment properties pay more.

The calculator pre-fills the midpoint for your LTV band and shows the typical range next to it — the field stays editable, so once you have a real quote, type it in and every number becomes yours.

When PMI goes away: two lines written into law

The Homeowners Protection Act of 1998 made PMI cancellation a legal right on conventional loans:

| Milestone | Rule | |---|---| | 80% LTV | Once the balance reaches 80% of the original price, you may request removal in writing (servicers require a good payment history) | | 78% LTV | At 78%, the servicer must cancel PMI automatically — no request needed | | Midpoint | Even if the balance never hits those marks, PMI must end at the scheduled midpoint of the loan |

On the default example ($400,000, 10% down, 6.5%, 30 years): paying only the scheduled amount, the balance crosses 80% at payment 96 (about year 8) and 78% at payment 110 (about year 9), cutting the payment by $180. The "When does PMI go away?" table in the calculator shows both points for your numbers.

Three ways to get there faster:

• Extra principal. Every dollar above the minimum shortens the PMI clock directly — usually the highest-value money in the whole payment.
• Appreciation plus a new appraisal. Most servicers let you cancel at 80% of current value with a fresh appraisal after two years of ownership — policies vary, so ask before you pay for one.
• Recast or refinance. Recast after a lump-sum principal payment, or refinance once your LTV qualifies.

How to avoid PMI with less than 20% down

• Piggyback loans (80-10-10). An 80% first mortgage, a 10% home-equity loan or line, 10% down. The second lien carries a higher rate but is usually payoff-able early — best when you know more cash is coming.
• Lender-paid PMI (LPMI). The lender drops the monthly premium in exchange for a slightly higher rate. Mind the crossover: the rate difference lasts the life of the loan, PMI dies at 78% — long-term, LPMI usually loses.
• Government programs. FHA has its own MIP (see the FHA loan calculator); VA loans charge no monthly mortgage insurance at all, just an upfront funding fee. Note that FHA's MIP on low-down-payment loans lasts the life of the loan — a different animal from cancellable PMI.

How to use this calculator

The page opens with the $400,000 / 10% down example so there is a full result on screen immediately:

1. Fill in Home price, Down payment, Interest rate, and Loan term. The default 10% down triggers PMI; at 20% or more the rate field switches to "no PMI."
2. The PMI rate field pre-fills your LTV band's midpoint with the typical range in its label — override it with your actual quote when you have one.
3. Property tax and insurance live in the collapsible section; they are optional and do not affect the PMI math.
4. Read the results: total monthly payment with the P&I / PMI / tax / insurance breakdown, then the When does PMI go away? table — 80% request date, 78% auto-cancellation date, and your payment once PMI ends.
5. Now slide Down payment up to 20% and watch PMI go to zero. That monthly difference is the real price of a smaller down payment — decide whether it is worth saving longer.

Frequently asked questions

How much is PMI per month?

Take the loan amount times the annual rate (0.3%–1.5%), divided by twelve. A $360,000 loan at 0.60% — the midpoint for 10% down — costs about $180 a month; a high band at 5% down can run past $400. Credit score moves the quote as much as down payment does.

When can I remove PMI?

At 80% of the original purchase price you may request it in writing; at 78% the servicer must cancel it automatically (Homeowners Protection Act of 1998). On a 30-year loan with 10% down, scheduled payments get you there around year 8. Extra principal or a new appraisal after appreciation gets you there sooner.

Is PMI tax deductible?

Generally no — the PMI premium deduction expired after tax year 2021 and has not been renewed. Mortgage interest itself is subject to the $750,000 balance cap and itemization threshold post-2017 tax reform; check with a tax professional before counting on either.

Can I avoid PMI with less than 20% down?

Yes: a piggyback second lien (80-10-10), lender-paid PMI traded for a higher rate, or a government program — VA has no monthly mortgage insurance, FHA trades PMI for its own MIP. Each has trade-offs covered in the section above; saving to 20% remains the cheapest option when you can.

What is the difference between PMI and FHA MIP?

PMI is private insurance on conventional loans and cancels automatically at 78% LTV. FHA's MIP goes to HUD and, on loans with less than 10% down, lasts for the life of the loan — only payoff or refinancing ends it. Over a long hold, cancellable PMI usually costs less. Run your FHA numbers in the FHA loan calculator.

Sources: PMI rate ranges reflect published industry rate cards for 30-year primary-residence conventional loans (MGIC and Radian rate cards; Freddie Mac lender guidance, 2026). Cancellation rules per the Homeowners Protection Act of 1998. Example figures computed by the mortgage engine behind this calculator. More tools in the finance calculators hub.

This calculator provides estimates for informational purposes only and does not constitute lending or financial advice. Your actual PMI quote depends on credit, insurer, and lender pricing — your Loan Estimate governs.