PMI Calculator
Calculate your Private Mortgage Insurance costs and removal timeline
Quick PMI Calculation - 4 Easy Steps!
Step 1: Enter your home price
Step 2: Enter your down payment
Step 3: Enter your loan details
Step 4: Get your PMI costs
Advanced PMI Calculator
Get detailed PMI analysis with custom rates, removal scenarios, and payment schedules.
PMI Cost Breakdown
Tips to Reduce or Eliminate PMI:
- Put down 20% or more to avoid PMI entirely
- Make extra principal payments to reach 80% LTV faster
- Get a new appraisal if your home value increased
- Consider a piggyback loan (80-10-10) instead of PMI
- Refinance when you reach 20% equity
What is PMI?
Private Mortgage Insurance (PMI) is required when you put down less than 20% on a conventional loan. It protects the lender if you default on your mortgage. PMI can typically be removed once you reach 20% equity in your home.
Important Note
PMI rates and removal policies vary by lender and loan type. This calculator provides estimates based on typical industry standards. Always check with your lender for specific PMI terms and removal requirements.
Frequently Asked Questions About PMI
Private Mortgage Insurance (PMI) is required on conventional loans when you put down less than 20% of the home's purchase price. PMI protects the lender in case you default on your mortgage. It's typically added to your monthly mortgage payment and can range from 0.3% to 1.5% of your loan amount annually.
PMI typically costs between 0.3% to 1.5% of your loan amount annually, or about $100-$300 per month on a $300,000 loan. The exact cost depends on your credit score, down payment amount, loan type, and lender. Higher credit scores and larger down payments result in lower PMI rates.
You can request PMI removal when you reach 20% equity (80% loan-to-value ratio). PMI is automatically removed when you reach 22% equity (78% LTV). You can also remove PMI through refinancing, getting a new appraisal showing increased home value, or making extra principal payments to reach the required equity threshold faster.
Yes, there are several ways to avoid PMI with less than 20% down: piggyback loans (80-10-10 or 80-15-5), lender-paid mortgage insurance (LPMI) with a higher interest rate, VA loans for eligible veterans, USDA loans for rural properties, or some conventional loans with built-in PMI alternatives.
PMI deductibility depends on current tax laws and your income level. As of recent tax years, PMI has been deductible for taxpayers with adjusted gross income under certain thresholds. However, tax laws change frequently, so consult with a tax professional or check current IRS guidelines for the most up-to-date information.
PMI (Private Mortgage Insurance) is for conventional loans, while MIP (Mortgage Insurance Premium) is for FHA loans. PMI can be removed once you reach 20% equity, but FHA MIP may be required for the life of the loan depending on your down payment and when you got the loan. PMI rates are typically lower than MIP rates.
To request PMI removal, contact your loan servicer when you believe you've reached 20% equity. You may need to provide a new appraisal, proof of home improvements, or documentation of extra payments made. Some lenders have specific forms to complete, and there may be fees associated with the removal process.
No, PMI protects the lender, not you as the borrower. If you default on your mortgage, PMI helps the lender recover their losses, but it doesn't protect you from foreclosure or help with your mortgage payments. For borrower protection, consider mortgage protection insurance or disability insurance that covers mortgage payments.