PMI Calculator
Calculate your Private Mortgage Insurance (PMI) cost. PMI is typically required when your down payment is less than 20% of the home price.
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Monthly PMI Payment
$210.00
Annual PMI: $2,520
Loan-to-Value (LTV)
PMI Rate Information
What is PMI?
Private Mortgage Insurance (PMI) is a type of insurance that protects the lender if you default on your mortgage. It's typically required when you make a down payment of less than 20% of the home's purchase price.
PMI allows buyers to purchase a home with a smaller down payment, but it adds to your monthly mortgage payment. Once you have built up 20% equity in your home, you can usually cancel PMI.
PMI Cost Factors
- Loan-to-Value (LTV) ratio
- Credit score
- Loan term (15 vs 30 years)
- Type of loan (fixed vs adjustable)
PMI Rates by LTV and Credit Score
| LTV Ratio | 740+ Credit | 680-739 Credit | 620-679 Credit | <620 Credit |
|---|---|---|---|---|
| >95% | 0.85% | 1.05% | 1.35% | 2.25% |
| 90-95% | 0.65% | 0.85% | 1.15% | 2.05% |
| 85-90% | 0.50% | 0.70% | 0.95% | 1.85% |
| 80-85% | 0.35% | 0.50% | 0.75% | 1.65% |
Frequently Asked Questions
When is PMI required?
PMI is typically required when your down payment is less than 20% of the home purchase price, meaning your loan-to-value (LTV) ratio is greater than 80%.
How long do I have to pay PMI?
You can typically cancel PMI once you have built up 20% equity in your home. This can happen through regular mortgage payments or by making extra principal payments.
How is PMI calculated?
PMI is calculated as a percentage of your loan amount. The rate depends on your LTV ratio, credit score, and loan term. It is usually added to your monthly mortgage payment.
Can I avoid PMI?
Yes, you can avoid PMI by making a down payment of at least 20%, taking out a second mortgage (piggyback loan), or using a government-backed loan program that doesn't require PMI.
Is PMI tax deductible?
PMI may be tax deductible for certain homeowners. The deduction is subject to income limits and other requirements. Consult a tax professional for guidance.
Related Tools & Resources
Mortgage Calculator
Calculate your total monthly mortgage payment including PMI, taxes, and insurance.
Affordability Calculator
Determine how much house you can afford based on your income and debt.
What is PMI?
Learn more about Private Mortgage Insurance and how it affects your home loan.
Refinance Calculator
See if refinancing could help you eliminate PMI and save money.
Disclaimer: This PMI calculator is for educational purposes only and should not be considered financial advice. PMI rates can vary by lender and may change over time.
Information is for educational purposes only. Always consult with a qualified mortgage professional before making financial decisions.