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 required when your down payment is less than 20% on a conventional mortgage. PMI protects the lender — not you — in case of default, and it adds a significant amount to your monthly payment. Rates typically range from 0.3% to 1.5% of the original loan amount per year, depending on your loan-to-value ratio (LTV) and credit score.
This calculator estimates your monthly PMI cost and shows you the total PMI you will pay before it is removed. It also calculates the date when your LTV reaches 80% (when you can request removal) and 78% (when automatic cancellation occurs under the Homeowners Protection Act).
For a $350,000 loan with 10% down, PMI can cost $100-$300 per month — a substantial expense that makes understanding removal timelines essential for your financial planning. Comparing PMI costs across different down-payment scenarios often reveals that stretching to a slightly larger down payment can eliminate or significantly reduce this ongoing expense, potentially saving you more than the additional upfront investment.
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.
Your loan-to-value ratio is the primary factor in PMI pricing. At 95% LTV (5% down), PMI rates are roughly double what they are at 85% LTV (15% down). If you can stretch your down payment from 10% to 15%, you could cut your PMI cost nearly in half. The sweet spot for many buyers is 15% down — it significantly reduces PMI while keeping more cash available for reserves.
At $150/month, PMI costs $1,800 per year. If it takes 7 years to reach 80% LTV, that is $12,600 in insurance that provides no benefit to you. This is why many financial advisors recommend aggressive principal payments in the early years — every extra dollar toward principal brings the PMI removal date closer.
Beyond waiting for amortization, you can accelerate PMI removal by: (1) making extra principal payments, (2) requesting a new appraisal if your home has appreciated significantly, or (3) making home improvements that increase appraised value. Once your LTV reaches 80% by any measurement, contact your lender to request removal.
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).
PMI deductibility has been extended and expired multiple times. As of recent tax years, it may be deductible for borrowers with adjusted gross income below $100,000. Check current IRS guidelines or consult a tax professional for the latest status.
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.