Calculate your private mortgage insurance (PMI) cost based on loan-to-value ratio and credit score. See when PMI drops off and how much it adds to your monthly payment.
Private mortgage insurance (PMI) is generally required on a conventional mortgage when the down payment is below 20%. PMI protects the lender rather than the borrower, and it raises the total monthly housing cost. The actual premium depends on the lender, mortgage insurer, credit profile, down payment, and loan program.
This calculator estimates monthly PMI using an internal rate table tied to the selected loan-to-value ratio and credit-score bucket. It also estimates the dates when the loan reaches 80% LTV (when a borrower may be able to request removal) and 78% LTV (when automatic termination may apply under the Homeowners Protection Act if the loan is current).
The result is a planning estimate designed to compare scenarios. It is not a lender-issued mortgage-insurance quote.
PMI is one of the largest hidden costs of buying a home with less than 20% down. This calculator helps you understand exactly how much PMI adds to your payment, how long you will pay it, and how much total PMI you will spend. Armed with this information, you can decide whether to put more down, choose a different loan product, or plan for PMI removal.
LTV = Loan amount / Home value × 100 Annual PMI = Loan amount × PMI rate Monthly PMI = Annual PMI / 12 PMI rate varies by LTV and credit score: LTV 80.01-85%: 0.30-0.70% LTV 85.01-90%: 0.40-0.95% LTV 90.01-95%: 0.55-1.25% LTV 95.01-97%: 0.75-1.50% PMI auto-cancels when scheduled balance reaches 78% of original value.
Result: $135/mo PMI | Drops off in ~6.5 years | Total PMI: ~$10,530
A $400,000 home with $360,000 loan = 90% LTV. With a 740+ credit score, the estimated PMI rate is 0.45%. Annual PMI = $360,000 × 0.0045 = $1,620, or $135/month. Based on the amortization schedule at a 6.5% rate, the loan reaches 80% LTV ($320,000) in about 78 months. Total PMI paid: approximately $10,530.
Loan-to-value ratio is one of the main drivers of PMI pricing. Higher LTVs generally mean higher insurance costs because the lender is taking more risk relative to the property value. This worksheet uses simplified ranges to show that directional relationship, not insurer-specific pricing tables.
Even when the monthly PMI charge looks manageable, the cumulative cost over several years can be material. That is why many borrowers compare different down-payment amounts, extra-principal strategies, and possible PMI-removal timing before finalizing the loan structure.
Borrowers often evaluate three paths: waiting for scheduled amortization, making extra principal payments, or asking the servicer about updated-value reviews when the property has appreciated. The right path depends on the loan documents, servicer standards, and the cost of any new appraisal or review.
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This worksheet estimates an annual PMI rate from a simplified internal grid based on the entered loan-to-value ratio and credit-score bucket, then converts that estimate into a monthly PMI amount. It separately projects the 80% and 78% loan-to-value milestones using the entered rate and term.
The PMI estimate is directional only. Actual mortgage-insurance pricing varies by insurer, borrower profile, occupancy, coverage level, and lender overlays.
PMI typically costs 0.3% to 1.5% of the loan amount per year. On a $350,000 loan, that is $87 to $437 per month. Your exact rate depends on your LTV ratio and credit score — higher LTV and lower credit scores mean higher PMI rates.
You can request PMI removal when your LTV reaches 80% of the original home value. Your lender must automatically cancel PMI when the scheduled balance reaches 78%. You can also request early removal if your home has appreciated enough to bring LTV below 80% (requires a new appraisal).
The tax treatment of mortgage insurance premiums has changed across tax years. Check the current IRS instructions or a tax professional before assuming PMI is deductible.
PMI (Private Mortgage Insurance) applies to conventional loans and can be removed at 80% LTV. MIP (Mortgage Insurance Premium) applies to FHA loans and typically lasts the entire loan life if you put less than 10% down. MIP has both an upfront fee (1.75%) and an annual fee.
Yes. Options include piggyback loans (80-10-10 structure), VA loans (no PMI, no down payment for eligible veterans), lender-paid PMI (higher rate, no separate PMI payment), and some credit union special programs that waive PMI requirements.
Standard PMI does not automatically adjust — the rate stays the same until removal. However, the actual dollar amount stays constant because it is based on the original loan amount in most cases. Some plans recalculate annually based on the current balance, which does decrease the cost slightly.
Credit score is a major factor. A borrower with a 760+ score and 90% LTV might pay 0.30-0.40%, while a borrower with a 660 score and the same LTV could pay 0.90-1.10%. Improving your score by even 20 points can meaningfully reduce PMI costs.
With lender-paid PMI (LPMI), the lender covers the insurance cost but charges a higher interest rate — typically 0.25-0.50% more. LPMI cannot be removed since it is built into the rate. It may be cheaper if you plan to sell or refinance within a few years, but more expensive long-term.