PMI Calculator
Calculate Private Mortgage Insurance (PMI) costs based on loan amount, credit score, and down payment
Calculate PMI Costs
The total purchase price of the home
PMI required when down payment < 20%
Good credit (720) - Affects PMI rate
Property usage affects PMI rate
PMI Cost Analysis
Loan Details
PMI Removal
Example PMI Calculation
Home Purchase Scenario
Home Price: $500,000
Down Payment: $75,000 (15%)
Loan Amount: $425,000
LTV Ratio: 85%
Credit Score: 720 (Good)
Property Type: Primary Residence
PMI Calculation
PMI Rate for 720 credit score, 85% LTV: 1.20%
Annual PMI = $425,000 × 1.20% = $5,100
Monthly PMI = $5,100 ÷ 12 = $425
PMI Rates by Credit Score
How to Remove PMI
Automatic Removal
At 78% LTV (22% equity)
Request Removal
At 80% LTV (20% equity)
Home Appreciation
New appraisal showing 20% equity
Refinance
If you have 20%+ equity
PMI Tips
PMI protects the lender, not you
Higher credit scores get lower PMI rates
PMI is not tax-deductible (2022+)
Consider 80/10/10 piggyback loans
Shop different PMI providers
Understanding Private Mortgage Insurance (PMI)
What is PMI?
Private Mortgage Insurance (PMI) is insurance that protects the lender if you default on your mortgage loan. Conventional lenders typically require PMI when your down payment is less than 20% of the home's purchase price.
Why is PMI Required?
- •Reduces lender risk on low down payment loans
- •Allows homebuyers to purchase with less than 20% down
- •Makes homeownership accessible sooner
- •Required by most conventional loan programs
PMI Cost Factors
Credit Score
Higher scores = lower PMI rates
Loan-to-Value Ratio
Lower LTV = lower PMI rates
Property Type
Primary homes have lowest rates
Loan Type
Purchase vs. refinance rates differ
PMI vs. FHA MIP
Private Mortgage Insurance
- • Conventional loans
- • Can be removed at 20% equity
- • Rates vary by credit score
- • No upfront premium (usually)
FHA Mortgage Insurance Premium
- • FHA loans only
- • May require refinance to remove
- • Fixed rates regardless of credit
- • Upfront premium required