PMI Calculator
Calculate monthly PMI costs, when it drops off, and how extra payments help
Typical range: 0.5%–1.5%. Lower with better credit.
Understanding PMI and How to Get Rid of It
PMI adds real cost to your monthly payment. Extra payments toward principal can eliminate it months or years early, saving thousands.
Guide
How it works
Private Mortgage Insurance (PMI) is required by most lenders when your down payment is less than 20% of the home's purchase price. PMI protects the lender — not you — if you default. It typically costs 0.5%–1.5% of the loan amount per year.
Under the Homeowners Protection Act, lenders must automatically cancel PMI when your loan balance reaches 78% of the original home value (based on the original amortization schedule). You can request cancellation at 80% LTV, which may require a new appraisal.
This calculator assumes 0% home appreciation for conservative estimates. Your actual PMI cancellation date may be sooner if your home appreciates.
Is PMI tax deductible?expand_more
PMI deductibility has varied by year and income level. As of recent tax years, the deduction has not been permanently extended. Check with a tax professional for the current tax year rules.
Can I avoid PMI without 20% down?expand_more
Yes. Options include: lender-paid PMI (higher interest rate instead), piggyback loans (80-10-10 structure), VA loans (no PMI for veterans), and some conventional loans with lender-paid PMI. Each has trade-offs.
How does home appreciation affect PMI?expand_more
If your home's value rises, your LTV may drop below 80% sooner. You can request PMI cancellation and a new appraisal from your lender. This calculator assumes 0% appreciation for conservative estimates.
What's the difference between PMI and MIP?expand_more
PMI is for conventional loans and can be removed. MIP (Mortgage Insurance Premium) is for FHA loans and often cannot be removed for the life of the loan for borrowers with less than 10% down payment.
Next steps