PMI Calculator

How to Use This PMI Calculator

To calculate your PMI payments, input the following information:

• Home price: Enter the price of the home you're buying.
• Down payment: Enter the amount of the down payment you plan to make.
• Interest rate: Enter the interest rate for the mortgage offer you're prequalified or preapproved for or use our current mortgage interest rates as estimates.
• Loan term: Use the dropdown to select a term of 10, 15, 20, 25 or 30 years.
• PMI rate: PMI rates typically range from 0.2% to 2.0% of the loan amount. You can ask lenders for an estimated PMI rate as part of your loan estimate, or play with different percentages to see how your PMI rate affects your payments.

When you click the Calculate button, you'll see the following results:

• Monthly PMI: The amount of your monthly PMI payment
• Monthly mortgage payment: The amount of your monthly mortgage payment without PMI
• Total monthly payment: "With PMI" shows your monthly payment including PMI and how long you'll pay it; "Without PMI" shows your monthly payment after reaching 20% equity and removing PMI
• Total mortgage paid: The total amount you'll pay over the loan term, including principal, interest and PMI
• Total interest paid: The total interest you'll pay over the loan term
• Total PMI paid: The total amount of PMI you'll pay over the loan term

Learn more: What Is Private Mortgage Insurance (PMI)?

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Check today’s rates to find the best loan offers. Staying updated on current rates helps you secure a competitive mortgage and save more over time.

How Is PMI Calculated?

Lenders calculate your monthly PMI payments by multiplying the amount of your mortgage by your PMI rate and dividing the result by 12. The PMI rate typically ranges from 0.2% to 2% of your loan amount per year if you make monthly PMI payments, which is the most common option.

You may also be able to pay PMI upfront when you close on the loan, or pay part upfront and part monthly. Some lenders will pay PMI for you, but the tradeoff is generally a higher mortgage interest rate.

Learn more: What Is Lender-Paid Mortgage Insurance (LPMI)?

Factors That Affect How Much You Pay for PMI

Several factors impact the cost of PMI, including:

• Your loan amount: Larger loans usually translate to higher PMI premiums, because the lender stands to lose more money if you don't repay the loan.
• Your loan-to-value ratio (LTV): The LTV reflects the portion of the home's appraised value that isn't covered by your down payment. A loan with an LTV of 80% or less won't require PMI. The higher your LTV, the riskier the loan is, and the more PMI will cost.
• Your loan type: Adjustable-rate mortgages (ARMs) generally have higher PMI rates because they're riskier for lenders than fixed-rate mortgages. If rates adjust upward, your monthly payments could rise higher than you can afford.
• Your credit score: Higher credit scores indicate you're less of a credit risk, which could qualify you for lower PMI rates.

Learn more: How a Higher Credit Score Can Help You Save on a Mortgage

How to Avoid Paying PMI

You can avoid paying PMI by making a down payment of at least 20%. Here are some other ways to avoid PMI:

• Get a VA or USDA loan. If you qualify for a mortgage backed by the U.S. Department of Veterans Affairs (VA) or U.S. Department of Agriculture (USDA), you won't have to pay PMI. However, these loans may require other kinds of mortgage insurance or have fees that conventional mortgages don't.
• Buy a less expensive home. If you can't afford a 20% down payment on the home you want, a smaller or older home, a condominium or a home in a more affordable area could stretch your cash to cover 20% of the purchase price.
• Get an 80-10-10 mortgage. Also called piggyback loans, 80-10-10 mortgages allow you to make a 10% down payment and avoid PMI. You get a mortgage for 80% of the home value and a loan for 10% of the home value that you put toward your down payment. The remaining 10% down payment comes from your own funds. You'll typically need excellent credit to qualify for a piggyback loan.

Tip: Are you struggling to save up a 20% down payment? Investigate down payment assistance programs that you may be eligible for.

Learn more: How to Save for a House

How to Get Rid of PMI

You have several options to remove PMI.

• Automatic cancellation: Your lender is required by law to cancel PMI when your mortgage hits an LTV ratio of 78%, based on the home's original value, or when you're halfway through the repayment term.
• Request removal: You can ask your lender to remove PMI when you reach 80% LTV based on your home's original value. Your lender may have other requirements, such as not having a second mortgage.
• Have your home reappraised: Rising home value increases your equity, possibly getting you to the 20% mark. If home prices have risen since you bought your home or you've made major home improvements, you may be able to get your home reappraised and have PMI removed based on the home's current value.
• Refinance your mortgage: Refinancing replaces your existing mortgage with a new one. If your current home value gives you 20% equity, you might be able to get a mortgage without PMI.

Tip: Using windfalls or biweekly mortgage payments to pay extra toward your mortgage principal can help you reach 20% equity faster and eliminate PMI. It also saves you money on interest.

The Bottom Line

Making a home down payment of 20% is the simplest way to avoid paying PMI. However, if you can't avoid PMI, taking steps to improve your credit score could help you qualify for lower interest rates on both your mortgage and PMI.

As you work on building your housing fund, take time to check your credit report and FICO^® Score^Θ for free from Experian. Signing up for free credit monitoring from Experian is a convenient way to track your progress and get alerts of important changes to your credit that could affect your ability to get a loan.