How to estimate PMI cost
See the premium and the path to cancellation.
1
Enter the home price and down payment
The loan-to-value ratio determines whether PMI applies.
2
Add the PMI rate
Use the rate quoted by the lender, usually an annual percentage of the loan.
3
Check the cancellation point
The estimate shows when the balance reaches 80% of the original value.
What does this tool do?
Lenders usually require private mortgage insurance when the down payment is below 20%. The premium is based on the loan balance, and it can often be cancelled once the balance reaches 80% of the original value.
The Formula
Monthly PMI = Loan × Annual PMI rate ÷ 12; cancellation when Balance ≤ 80% of the purchase priceFrequently Asked Questions
Is PMI always required below 20% down?
Not always. Lender and loan-program rules differ, and some loans use a different insurance structure.
How can PMI end early?
By reaching the cancellation threshold through payments or appreciation, or by refinancing. An appraisal may be required.