Private Mortgage Insurance (PMI) Estimator
Estimate exactly how much Private Mortgage Insurance (PMI) will add to your monthly housing payment.
Input your parameters to generate the Private Mortgage Insurance (PMI) Estimator results.
How to Use This Calculator
Get accurate results in seconds by following these simple steps.
Enter Home Value & Loan
Input the property value and total loan amount to establish LTV.
Set PMI Rate
Enter the estimated annual PMI rate based on your credit score and LTV bracket.
See Monthly PMI
View the exact monthly PMI charge and when it can be removed.
Why Use This Tool?
Cost Awareness
PMI adds hundreds monthly — know the exact cost before committing to less than 20% down.
Removal Planning
Track when your LTV drops below 80% so you can request PMI cancellation.
Down Payment Tradeoff
Compare the cost of a larger down payment vs. years of PMI payments.
How PMI Rate Calculation Works
If you purchase a home with a down payment of less than 20%, conventional lenders will require you to purchase Private Mortgage Insurance (PMI). Since your loan poses a higher risk of default without 20% equity, the PMI policy protects the lender—not you—in the event of foreclosure.
The cost of your PMI depends on two critical factors: your Loan-to-Value (LTV) ratio and your Credit Score. A 3% down payment with a 650 credit score will trigger an aggressively high PMI premium compared to a 15% down payment with an 800 credit score.
This calculator instantly estimates your exact PMI tier by cross-referencing industry-standard credit matrices, providing you with realistic monthly added expenses.
Frequently Asked Questions
Under the Homeowners Protection Act, your lender must automatically cancel PMI when your principal balance drops to 78% of the original loan amount. Alternatively, you can actively request PMI cancellation once your balance hits 80%, or by ordering a new appraisal if local property values have skyrocketed.
No. PMI applies strictly to Conventional loans and can be canceled. MIP applies to FHA loans, is paid directly to the Federal Housing Administration, and typically remains active for the entire lifespan of the loan unless you refinance out of the FHA.
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