How the PMI Calculator Works
This calculator estimates the monthly cost of private mortgage insurance based on your loan size, down payment, credit score, and loan type. PMI protects the lender when your down payment is below 20%, and this tool shows exactly what it adds to your payment.
What Drives the Cost
- Loan-to-value: smaller down payment = higher PMI.
- Credit score: better scores = lower premiums.
- Loan type: fixed vs ARM and term affect pricing.
PMI typically ranges from 0.2% to 1.0% of the loan amount per year. On a $350,000 loan that is roughly $60–$290 a month.
Calculate Your PMI Cost
Frequently Asked Questions
PMI is insurance that protects the lender if you default on your conventional loan. It's required when your down payment is less than 20% of the home's value. FHA loans have a similar mortgage insurance premium (MIP) that's required regardless of down payment amount.
PMI typically costs 0.3% to 1.5% of your original loan amount per year, divided into monthly payments. The exact cost depends on your credit score, down payment amount, and loan type. On a $300,000 loan, PMI might cost $90-375 per month.
You can request PMI removal when your loan balance reaches 80% of the home's original value. PMI automatically terminates when your balance reaches 78% of the original value (by law). For FHA loans, MIP cannot be removed if you put less than 10% down — it stays for the life of the loan.
PMI may be tax deductible if your adjusted gross income is under $100,000 (full deduction) or up to $110,000 (phased out). The deduction has been extended retroactively several times. Check with a tax professional for current rules.
How to Remove PMI
Reach 20% equity
Request cancellation from your lender once your balance (or value) hits 80% LTV. At 22% most lenders auto-cancel.
Refinance
If your home appreciated, a new loan under 80% LTV drops PMI entirely. See our refinance overview.
PMI vs a Bigger Down Payment
Paying PMI temporarily while keeping cash reserves is often smarter than draining savings to hit 20%. The insurance is cancellable, while drained savings are gone. Our 20% vs lower guide explains the trade-off.
Frequently Asked Questions
Is PMI tax deductible?
It may be for some taxpayers, but deductions have changed over time. Consult a tax professional for your situation.
Do VA/USDA loans have PMI?
No PMI, though VA has a funding fee and USDA has a guarantee fee. They avoid monthly mortgage insurance premiums.
Can I avoid PMI another way?
Lender-paid MI (higher rate), a piggyback loan (80/10/10), or a 20% down payment can avoid borrower-paid PMI.