PMI Calculator
Calculate your Private Mortgage Insurance (PMI) costs and see when it drops off.
Loan Information
$20,000 down payment
Higher scores = lower PMI rates
How to Avoid PMI
- •Put down 20% or more
- •Use a piggyback loan (80-10-10)
- •Consider lender-paid PMI (higher rate)
- •VA loans have no PMI requirement
- •USDA loans have lower mortgage insurance
Monthly PMI Payment
$206
0.65% annual rate
PMI Details
When Does PMI Drop Off?
Estimated time to 80% LTV:
3 years
Based on 3% annual appreciation and principal paydown
Total PMI paid until dropoff:
$7,410
• PMI automatically drops at 78% LTV
• You can request removal at 80% LTV
• May require new appraisal
• Must have good payment history
Ways to Remove PMI Faster
- • Make extra principal payments
- • Home improvements that increase value
- • Request removal after reaching 80% LTV
- • Refinance when you have 20% equity
Understanding PMI
What is PMI?
Private Mortgage Insurance protects the lender if you default on your loan. It's typically required when you put down less than 20% on a conventional loan.
PMI vs MIP
FHA loans require Mortgage Insurance Premium (MIP) instead of PMI. MIP rates are set by FHA and may last for the life of the loan depending on your down payment.
Tax Deductibility
PMI may be tax-deductible depending on your income and current tax laws. Consult a tax professional for details.
Alternatives to PMI
Consider VA loans (no PMI), USDA loans (lower MI), piggyback loans, or lender-paid PMI options to reduce or eliminate PMI costs.