PMI Calculator (Private Mortgage Insurance)
Private Mortgage Insurance calculator. Computes monthly + lifetime PMI cost when down payment is below 20%. Shows the HOPA-mandated auto-cancellation month at 78% LTV plus the 80% request-cancellation threshold.
PMI Calculator
| Loan amount | — |
| LTV at origination | — |
| Down payment % | — |
| Annual PMI cost | — |
| Auto-cancel month (78% LTV) | — |
| Request-cancel month (80% LTV) | — |
| Extra down to skip PMI entirely | — |
How to use the PMI calculator
Enter home price + down payment
Total home purchase price and your cash down at closing. PMI is triggered when down payment is less than 20% of price — i.e. loan-to-value (LTV) above 80%. If you put down exactly 20% or more, no PMI required. Below that, you pay PMI until the loan amortizes down (or you refinance / re-appraise) to 78% LTV.
Enter mortgage rate + term
Standard mortgage terms — 30-year fixed at 6.5-7.5% (mid-2026 prime borrowers) is typical. The mortgage rate matters for PMI because it determines how fast your principal amortizes — higher rate = slower principal paydown = longer PMI period. 15-year loans eliminate PMI faster purely because principal pays down 2-3× faster.
Enter PMI rate (% of loan annually)
PMI cost varies 0.3-1.5% of loan per year, based on (a) credit score — 760+ FICO gets the lowest rates, <680 gets the highest, (b) LTV — 95% LTV pays more than 85% LTV, (c) loan type. Most prime borrowers @ ~750 FICO with 5-10% down: 0.5-0.8% PMI. Borrowers @ 680 FICO with 3-5% down: 1.0-1.5%. Ask your lender for the actual quote — they're sourced from MGIC, Genworth, Radian, Essent.
Read monthly + lifetime PMI cost
Three headlines: (1) Monthly PMI — added to your P&I + tax + insurance. A $370K loan @ 0.6% PMI = $185/month. (2) Total PMI until cancellation — what you'll pay before HOPA auto-cancels it. (3) Auto-cancel timing — when scheduled amortization brings LTV to 78% of original home value. Typically 8-13 years on a 30-year loan, depending on down payment and rate.
Use the analysis to decide your down payment
The PMI table also shows extra down payment needed to avoid PMI entirely (i.e. to get to 20% down). For many borrowers, the break-even calculation is: is the $10-20K extra down worth saving $150-300/month in PMI? Usually yes if you have the cash — PMI is "money down the drain" since it protects the lender, not you. But low-down-payment programs (FHA, VA, USDA) can still make sense for first-time buyers who otherwise couldn't save the 20%.
PMI — the insurance that protects the lender, not you
Private Mortgage Insurance (PMI) is an insurance policy that protects the lender from default loss on a high-LTV mortgage. When your down payment is less than 20% — meaning the lender is on the hook for more than 80% of the home\'s value — they require you to pay for an insurance policy that reimburses them if you default. The policy reimburses the bank, not you. PMI is the single most-misunderstood line item on a US mortgage statement: many first-time buyers think they\'re paying for their own protection. They aren\'t. PMI typically costs 0.3-1.5% of the loan amount annually, paid monthly as part of the mortgage payment. For a $370K loan at 0.6% PMI, that\'s $185/month — adding up to $10-25K over the years until it cancels.
How HOPA changed the rules
Before the Homeowners Protection Act of 1998 (HOPA), borrowers could be stuck paying PMI for the entire life of their loan even after their LTV dropped well below 80%. Lenders had no obligation to cancel. HOPA changed everything: (1) Automatic cancellation at 78% LTV based on the original amortization schedule — no request required, no appraisal needed. (2) Borrower-requested cancellation at 80% LTV based on the original purchase price — you can ask, but the lender may require a current appraisal at your expense. (3) Final cancellation at the midpoint of the original loan term, regardless of LTV — a failsafe for declining-value scenarios. (4) Disclosure requirements — lenders must tell you at closing exactly when PMI will auto-cancel.
PMI doesn\'t protect you. It protects the lender from your default. The borrower-paid premium is calculated from your loan terms but disbursed to the bank if anything goes wrong. Knowing this changes how you should think about minimising it.
Should you put 20% down to avoid PMI?
The classic question. Three factors. (1) The PMI cost. $150-400/month for typical loan sizes — annualised, that\'s $1,800-$4,800/year of pure cost. (2) The opportunity cost of extra down. If you have $20K cash and could put it down to skip PMI, you give up the investment return on that $20K. If your alternative investment returns 8% after-tax and PMI costs you ~3% (185/month on $74K extra down = 3%), invest the cash. If your alternative is a 4% high-yield savings, save the PMI. (3) Home appreciation. If home values rise 5%+ per year (mid-2020s US average), you can re-appraise after a year or two and request PMI cancellation when LTV drops to 80% via appreciation rather than amortization. Speeds the cancellation timeline. Many savvy buyers plan to put 5-10% down, pay PMI for 2-3 years, then re-appraise to drop it.
FHA vs Conventional vs VA
FHA loans use a different insurance: MIP (Mortgage Insurance Premium), not PMI. MIP has two parts: an upfront premium (1.75% of loan, financed into the loan), plus annual premiums (0.45-1.05%). For loans originated after 2013 with <10% down, MIP lasts the entire life of the loan — it does NOT cancel like PMI. Many borrowers refinance from FHA to conventional once LTV drops below 80%, specifically to escape lifetime MIP. VA loans (eligible veterans) have NO mortgage insurance — instead, a one-time funding fee at closing. USDA loans (rural areas) have a similar lifetime guarantee fee. Conventional with PMI wins long-term because PMI eventually cancels; FHA wins short-term because requirements are easier and rates are slightly lower.
10 Things to Know About PMI
PMI protects the lender, not you. The most-misunderstood part of US mortgages. Default on the loan, insurance pays the bank, you still lose the house.
Triggered at LTV > 80%. Below 20% down = PMI required. Above = no PMI. Sharp threshold at the 20% line.
PMI cost: 0.3-1.5% of loan annually. Credit score is the biggest driver — 760+ FICO gets the cheapest rates.
HOPA 1998 mandates auto-cancellation at 78% LTV based on original amortization. No request needed, no appraisal.
You can request PMI cancellation at 80% LTV — but the lender may require a current appraisal at your expense.
Re-appraisal can accelerate cancellation if home value has risen. Many savvy buyers re-appraise after 2-3 years to drop PMI early.
FHA loans use MIP, not PMI. Post-2013 MIP lasts the ENTIRE life of the loan if down payment is <10%. Refinance to escape.
Big insurers: MGIC, Genworth, Radian, Essent, Arch, National MI. Lenders rate-shop across them. You don\'t choose.
Lender-paid PMI (LPMI) is an alternative where the lender pays PMI in exchange for a higher mortgage rate (0.25-0.5% higher). Can\'t be cancelled.
VA + USDA loans have no PMI — replaced by upfront funding fees. Big advantage for eligible borrowers.
Frequently asked questions
-
Several ways. (1) VA loan if you\'re an eligible veteran — zero PMI, often zero down. (2) USDA loan in qualifying rural areas — no PMI, just an annual guarantee fee. (3) "Piggyback" 80-10-10 loan: first mortgage at 80% LTV (no PMI), second mortgage / HELOC at 10%, 10% down. Less common post-2008 but still available. (4) Lender-paid PMI (LPMI) — lender pays PMI in exchange for a higher rate (0.25-0.5% higher). LPMI can\'t be cancelled, so it\'s worse long-term but better short-term cash flow. (5) Credit union or community-lender programs sometimes offer no-PMI low-down conventional loans.
-
For automatic cancellation, no. HOPA auto-cancellation is based on the original amortization schedule, not your actual balance — extra payments don\'t accelerate the auto-cancel date. For requested cancellation at 80% LTV, yes. When you actually reach 80% LTV via extra payments + scheduled amortization, you can request cancellation (lender may require appraisal). For aggressive prepayers, this can shave years off PMI. Also: a new appraisal showing home appreciation has pushed LTV below 80% can trigger cancellation regardless of payment history.
-
As of 2026, the PMI deduction has expired. PMI was deductible (subject to income limits) through 2021 via repeated tax-extender legislation, but Congress did not renew it for 2022 and after. Mortgage interest itself is still deductible up to $750K of acquisition debt (post-2017 TCJA limit). For up-to-date tax treatment, consult a CPA or the IRS Publication 936. Many borrowers no longer itemize at all due to the higher TCJA standard deduction, making the deduction moot regardless.
-
All three mean "mortgage insurance" but differ by loan type. PMI (Private Mortgage Insurance) = conventional loans only. Issued by private insurers (MGIC, Genworth, etc.). Cancellable per HOPA. MIP (Mortgage Insurance Premium) = FHA loans only. Issued by the FHA. NOT cancellable for post-2013 loans with <10% down — lasts the life of the loan. MI is a generic abbreviation that could mean either. Lenders often use "MI" in disclosures because most paperwork is loan-agnostic. The important distinction is FHA MIP vs Conventional PMI — the cancellation rules are dramatically different.
-
Three triggers under HOPA. (1) Auto-cancel at 78% LTV per original amortization (typically year 8-13 on a 30-yr loan). (2) Borrower request at 80% LTV (typically year 6-11). (3) Loan midpoint failsafe — at half the original loan term (year 15 on a 30-yr, year 7.5 on a 15-yr), regardless of LTV. This catches scenarios where home values have collapsed and the borrower still owes more than the home is worth (negative equity) but their PMI is still being charged. Any borrower currently paying PMI past the midpoint of their loan term should call their servicer immediately — they may be entitled to a refund of overpaid PMI.
-
Three actions. (1) Boost your credit score. A 720 → 760 FICO change can drop PMI from 0.9% to 0.5%. Pay down credit-card balances, dispute errors, age accounts. (2) Increase down payment. Each 5% down-payment bracket (5%, 10%, 15%) qualifies for materially lower PMI. (3) Shop lenders. Different lenders use different PMI providers (MGIC, Genworth, Radian, Essent, Arch, National MI) and get different rates. A lender quoting 0.9% may have a competitor quoting 0.6% on the same loan. Get 3-5 lender quotes — costs nothing. For FHA: there\'s no lender choice (MIP is government-set), so the only lever is loan type — refinance to conventional once equity allows.
-
Generally no, but two scenarios trigger refunds. (1) Servicer error — if your servicer continues charging PMI past the auto-cancellation date, they owe you a refund of all PMI paid since the cancellation date. This actually happens — request your amortization schedule and check the cancellation date. (2) Lender-paid PMI (LPMI) refinance — if you refinance out of LPMI, you don\'t get a refund (it was baked into the rate), but the rate drops. FHA upfront MIP refund — possible if you refinance FHA-to-FHA within 36 months, on a sliding scale. Borrower-paid monthly PMI on conventional loans is generally not refundable.
-
It walks the standard amortization schedule month-by-month from the entered loan, rate, and term. At each month, it checks whether the scheduled balance has dropped below 80% of original home value (request-cancel threshold) and 78% (auto-cancel threshold). The first month each threshold is crossed is reported. This matches HOPA\'s definition of "based on the original amortization schedule" — exactly what your servicer uses for the auto-cancel decision. Real-world variation: home-value re-appraisals can accelerate the 80%-threshold cancellation but require borrower action and lender approval.
-
No. Home price, down payment, rate, PMI rate — everything stays in your browser. The calculation runs as client-side JavaScript: amortization walk to find LTV thresholds, monthly + lifetime PMI totals. Open DevTools → Network when you click Calculate and you\'ll see zero outbound requests. Safe for confidential financial planning.
-
HOPA (Homeowners Protection Act) — 12 USC 4901-4910, the source legislation. CFPB (consumerfinance.gov) — clear plain-English guide to PMI rules. MGIC, Genworth, Radian, Essent rate sheets — public PMI rate matrices showing how credit score + LTV + loan type drive premium. HUD Handbook 4000.1 for FHA MIP rules (different from PMI). For comprehensive treatment: Brueggeman & Fisher\'s "Real Estate Finance and Investments" chapter on mortgage insurance.
Related News
You may be interested in these recent stories from our newsroom.
-
Snowflake jumps 36 per cent in a day on an earnings beat and a US$6 billion AWS chip deal
Snowflake had its best day as a public company on 28 May, closing up 36 per cent after a clean first-quarter beat and a five-year, US$6 bill...
-
MAS Scraps Mandatory Financial Advice for Most Complex Product Buyers in Retail Shake-Up
Singapore retail investors buying structured notes, derivatives and investment-linked policies will no longer need mandatory financial advic...
-
SEC Rewrites Float Rules, PSE Moves to Implement Them — Clearing the Path for GCash's USD 1B Philippine IPO
The SEC lowered the public float floor for large Philippine issuers in February 2026. The PSE followed with a consultation paper in April. T...
75 more free tools
Calculators, converters, security tools — no signup.