PMI Calculator
Calculate PMI
Estimate monthly PMI cost and when it drops off
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Formula
Monthly PMI = (Loan Amount × Annual PMI Rate) / 12. LTV = Loan Amount / Home Price × 100. PMI drops at 80% LTV.
Frequently Asked Questions
What is PMI and when is it required?
Private Mortgage Insurance (PMI) is required on conventional loans when the down payment is less than 20% (LTV above 80%). It protects the lender if you default. PMI typically costs 0.5% to 1% of the loan amount annually.
When does PMI go away?
PMI automatically terminates when your loan balance reaches 78% of the original purchase price. You can request PMI removal when you reach 80% LTV. Some lenders also allow removal based on a new appraisal showing sufficient equity.
How can I avoid PMI?
You can avoid PMI by making a 20% down payment, using a piggyback loan (80/10/10), choosing a VA loan (no PMI), or opting for lender-paid PMI (which typically means a slightly higher interest rate).
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