PMI Calculator

What PMI costs — and why it varies

Private mortgage insurance typically runs 0.3% to 0.9% of the loan per year, priced by your loan-to-value ratio and credit score. On a $400,000 home with 10% down, our estimate is about $195 a month. With 5% down and a weaker credit profile, PMI can exceed $300 a month; with 15% down and excellent credit, it may be under $80. It is real money — which is why the last few points of down payment are the most valuable ones.

How to get rid of PMI

• Reach 80% LTV through payments and request cancellation in writing (the Homeowners Protection Act gives you this right on most conventional loans).
• Automatic termination at 78% LTV on the original schedule, if you are current on payments.
• Appreciation route: if your home's value rises, a new appraisal can prove 20% equity sooner — lenders may accept it after a seasoning period, especially with documented improvements.
• Refinance into a new loan at ≤80% LTV — weigh the closing costs with the refinance calculator before choosing this route.

PMI vs FHA MIP vs piggyback loans

PMI (conventional) can be cancelled; FHA's MIP usually cannot without refinancing — a key reason conventional wins for borrowers who qualify for both. An 80-10-10 'piggyback' (second loan for 10%) avoids PMI but adds a second payment at a higher rate; compare carefully in the payment calculator. And if you are still deciding how much to put down, the down payment calculator shows the PMI cliff at 20% in dollars.