Mortgage Insurance (PMI) Calculator
Put less than 20% down on a conventional loan and you'll likely pay private mortgage insurance (PMI) — protecting the lender, not you. This shows your monthly PMI and when it drops off.
What PMI is (CFPB): required on conventional loans with <20% down; it insures the lender, not the borrower. Cost: typically ~0.5%-1.0% of the loan amount annually (credit, LTV, and loan size move it) — an editable example here, never a lender quote. Cancellation: PMI auto-cancels at 78% LTV; you can request removal at 80% (typically after ~11 years on a 30-year with 10% down). Alternatives: lender-paid PMI (higher rate, no monthly premium) or an 80/10/10 piggyback — compare total cost.
FAQ
Is PMI worth it or should I wait for 20% down?
Waiting saves PMI but costs time and rent. A $30,000 down payment saved by waiting 3 years often costs more in rent than 3 years of PMI. Model both scenarios with your real numbers.
When does PMI go away?
It auto-cancels at 78% loan-to-value and you can request cancellation at 80% LTV, per federal rules (FHA MIP is different — it generally stays for the loan life on new loans).
Does PMI protect me if I can't pay?
No — it protects the lender against your default. You can still lose the home to foreclosure. It simply makes a low-down-payment loan possible for you.
Figures are editable example defaults for modeling, not quotes or advice. Financial, tax, and medical outcomes vary with your situation — verify with a qualified professional (CFP, CPA, tax advisor, or veterinarian).