PMI Calculator
Calculate your private mortgage insurance (PMI) cost based on your home price, down payment, and credit score. See when PMI drops off and compare the total cost of buying now with PMI versus waiting until you have 20% down.
PMI Calculator Inputs
Enter Loan Details
Your PMI Results
Estimated Monthly PMI
- Monthly PMI Payment
- $73.50 /mo
- Monthly PMI
- $73.50
- Annual PMI
- $882.00
- PMI Rate
- 0.28%
- Months Until PMI Drops Off
- 95 months (7.9 years)
- Total PMI Paid
- $6,982.50
- Monthly P&I
- $1,991.01
PMI Rates by Credit Score (85-90% LTV)
| Credit Score | PMI Rate | Monthly PMI | Annual PMI |
|---|---|---|---|
| Excellent (740+) | 0.17% | $44.63 | $535.50 |
| Good (680-739) (selected) | 0.28% | $73.50 | $882.00 |
| Fair (620-679) | 0.40% | $105.00 | $1,260.00 |
| Poor (below 620) | 0.54% | $141.75 | $1,701.00 |
Buying with PMI vs. Waiting for 20% Down
| With PMI (10.0% Down) | 20% Down (No PMI) | |
|---|---|---|
| Down Payment | $35,000.00 | $70,000.00 |
| Loan Amount | $315,000.00 | $280,000.00 |
| Monthly P&I | $1,991.01 | $1,769.79 |
| Monthly PMI | $73.50 | $0.00 |
| Monthly Total (P&I + PMI) | $2,064.51 | $1,769.79 |
| Total Interest | $401,763.60 | $357,124.40 |
| Total PMI | $6,982.50 | $0.00 |
| Total Cost (P&I + PMI) | $723,746.10 | $637,124.40 |
| Additional Down Payment Needed | — | $35,000.00 |
How Private Mortgage Insurance Works
Private Mortgage Insurance (PMI) is required by lenders when a borrower makes a down payment of less than 20% on a conventional mortgage. PMI protects the lender (not the borrower) against losses if the borrower defaults on the loan. Despite being an added cost, PMI enables millions of homebuyers to purchase homes sooner without needing to save a full 20% down payment.
PMI rates are determined by two primary factors: your credit score and your loan-to-value (LTV) ratio. Borrowers with higher credit scores and lower LTV ratios pay the lowest PMI premiums. The good news is that PMI is temporary — it can be removed once you reach 20% equity in your home.
PMI Rate Schedule
| LTV Range | Excellent (740+) | Good (680-739) | Fair (620-679) | Poor (<620) |
|---|---|---|---|---|
| 85-90% | 0.17% | 0.28% | 0.40% | 0.54% |
| 90-95% | 0.29% | 0.44% | 0.59% | 0.78% |
| 95-97% | 0.49% | 0.68% | 0.88% | 1.10% |
How to Remove PMI
Automatic Termination
Under the Homeowners Protection Act, PMI is automatically terminated when your loan balance reaches 78% of the original purchase price. No action is required from you.
Request Removal at 80%
You can request PMI removal once your loan balance reaches 80% of the original value. Contact your servicer and you may need a current appraisal to verify your home's value.
Refinance
If your home has appreciated significantly, refinancing to a new loan with a lower LTV ratio can eliminate PMI. This works well in rising real estate markets.
Extra Payments
Making extra principal payments accelerates the timeline to 80% LTV. Even small additional payments can shave months or years off your PMI obligation.
Related Calculators
Frequently Asked Questions
What is the difference between PMI and MIP?
PMI (Private Mortgage Insurance) applies to conventional loans and can be removed once you reach 20% equity. MIP (Mortgage Insurance Premium) applies to FHA loans and typically lasts the life of the loan if you put less than 10% down. PMI rates also vary by credit score, while FHA MIP rates are fixed by the government.
Is PMI tax deductible?
PMI deductibility has been extended and expired multiple times by Congress. Check with a tax professional or the IRS for the current status. When available, the deduction phases out for adjusted gross incomes above $100,000.
Can I get a loan without PMI with less than 20% down?
Yes, some options include: lender-paid PMI (LPMI) where the lender pays PMI in exchange for a higher interest rate, piggyback loans (80-10-10 where a second mortgage covers part of the down payment), VA loans for eligible veterans, and some credit union special programs.
How does home appreciation affect PMI?
Automatic PMI termination is based on the original purchase price, not current market value. However, if your home has appreciated, you can request PMI removal based on the current appraised value once you reach 80% LTV using that new value. This may require a new appraisal at your expense.
How accurate is this PMI calculator?
This calculator uses industry-standard PMI rate ranges that represent typical rates from major PMI providers. Actual PMI rates may vary by insurer, loan type, and additional factors. The P&I calculation uses the standard amortization formula and is accurate to the cent. Contact your lender for an exact PMI quote.