PMI Calculator
Estimate private mortgage insurance costs based on your home price, down payment, and annual PMI rate. This calculator can help you understand how PMI may affect your monthly housing payment.
Enter the total purchase price of the home.
Enter the amount you plan to pay upfront toward the home.
Typical PMI rates often range from about 0.3% to 1.5% per year depending on the loan and borrower profile.
How This Calculator Works
This PMI calculator estimates private mortgage insurance by first calculating your loan amount from the home price and down payment. It then applies the annual PMI rate to that loan amount and converts the result into an estimated monthly PMI cost.
Formula
Monthly PMI = (Loan Amount * Annual PMI Rate) / 12
Example
If you buy a $350,000 home, put down $35,000, and your annual PMI rate is 0.5%, your loan amount would be $315,000. That would create an estimated annual PMI cost of $1,575, or about $131.25 per month.
Frequently Asked Questions
What is PMI?
PMI stands for private mortgage insurance. It is commonly required on conventional loans when the down payment is less than 20% of the home price.
When is PMI usually required?
PMI is typically required when you put down less than 20% on a conventional mortgage. Lender requirements can vary, but this is a common threshold.
How is PMI calculated?
PMI is usually based on your loan amount and an annual PMI rate. The annual cost is divided into monthly payments and added to your mortgage payment.
Can PMI be removed later?
In many cases, yes. PMI can often be removed once your loan-to-value ratio drops to a certain level, often around 80%, depending on the loan and lender rules.
Does PMI go to the lender?
PMI protects the lender, not the borrower. Even though you pay for it, the coverage is generally for the lender in case of default.