PMI Calculator
Estimate your private mortgage insurance costs and see when you can get rid of PMI. Calculate the true cost of putting less than 20% down.
Understanding PMI
What is PMI?
Private Mortgage Insurance (PMI) is required by lenders when you put less than 20% down on a conventional mortgage. It protects the lender (not you) in case of default. PMI typically costs 0.3-1.5% of the loan amount per year.
How to Remove PMI
You can request PMI removal once your LTV reaches 80% (20% equity). PMI is automatically cancelled at 78% LTV. You can also reach 80% LTV faster through home appreciation — get a new appraisal to prove it. Some lenders allow lump-sum payments to reach the threshold sooner.
PMI vs No PMI: Is 20% Down Worth It?
Putting 20% down avoids PMI entirely but requires more cash upfront. Sometimes it's smarter to put less down and invest the difference. Compare the PMI cost to your expected investment returns to decide.