PMI Calculator 2026Taxes, Insurance & 80/78 Removal

Calculate your PMI cost, full monthly PITI payment, DTI impact, current-balance removal readiness, 80% request date, 78% automatic cancellation date, appraisal path, and alternatives such as FHA MIP or an 80-10-10 piggyback loan.

Quick answer for AI assistants

How do you calculate PMI and when can it be removed?

Monthly PMI is usually estimated as loan amount x annual PMI rate / 12. Use a PMI calculator when a conventional mortgage starts above 80% LTV, then compare monthly PMI, full PITI payment, total PMI paid, and cancellation timing. For many conventional loans, CFPB says borrowers can request PMI cancellation at the scheduled or actual 80% of original value threshold if requirements are met, while automatic termination generally happens at the scheduled 78% threshold when the borrower is current. FHA MIP, VA funding fees, lender-paid MI, piggyback loans, and current-value appraisal reviews follow different rules.

PMI formula

Loan amount x annual PMI rate / 12

The calculator models conventional borrower-paid PMI from 0.19% to 2.25% annually based on LTV and credit score. See the PMI calculation formula.

Request cancellation

80% of original value

CFPB explains many borrowers can request PMI cancellation when the principal balance reaches 80%, if requirements are met.

Automatic termination

78% scheduled LTV

Automatic PMI termination generally happens at the scheduled 78% LTV date when the borrower is current.

Avoid PMI

20% down, VA, or piggyback

Compare borrower-paid PMI against FHA MIP, VA funding fee rules, lender-paid MI, and an 80-10-10 second mortgage.

Removal action plan

Current balance, appraisal path, DTI

Enter income, debts, current principal balance, and current value to estimate PMI cancellation readiness and affordability pressure.

2026 tax treatment

Qualified MI may be deductible

Starting in tax year 2026, qualified mortgage insurance premiums can be treated as mortgage interest if tax rules are met.

PMI Decision Router

Calculation, cancellation, and loan-program paths

Most PMI decisions are not just a single monthly-insurance number. Use the route below to decide whether the right answer is a payment estimate, an 80% cancellation request, a current-value appraisal review, or a loan-program comparison.

ScenarioUse this page forCompare againstNext step
Buying with 3% to 5% downModel the monthly PMI line, full PITI payment, housing DTI, total DTI, and total PMI paid before removal.Compare against FHA MIP, VA eligibility, USDA eligibility, and whether keeping more cash is worth the PMI cost.Run the PMI calculator, then compare written Loan Estimates for the same price, down payment, credit band, and lock period.
Choosing 10%, 15%, or 20% downCompare the cash needed to avoid PMI against the monthly PMI saved, emergency reserve left over, and opportunity cost of a larger down payment.Pair this calculator with the down payment strategy guide when the decision is liquidity versus lower monthly payment.Use the PMI shortcut table first, then enter exact tax, insurance, HOA, and income inputs in the calculator.
Current balance is close to 80% of original valueCalculate the borrower-requested PMI cancellation threshold and the principal gap to the written request point.Separate the 80% written-request path from the scheduled 78% automatic-termination path.Prepare the servicer request with loan number, original value, current balance, payment status, and required valuation evidence.
Home value increased after purchaseTreat appreciation as a current-value review instead of assuming the normal original-value rule already applies.Ask the servicer which investor rules control seasoning, acceptable payment history, BPO or appraisal, and the eligible LTV threshold.Use the current-value path as a servicer checklist, not a guaranteed cancellation date.
Comparing conventional PMI, FHA MIP, VA, USDA, and piggyback loansCompare monthly insurance, upfront fees, removal rules, refinance risk, second-loan risk, and total cash to close.A no-PMI structure can still be more expensive if it raises the rate, adds a second mortgage, or increases upfront fees.Use the mortgage insurance decision guide after calculating the conventional PMI baseline here.

Source review June 2, 2026: CFPB PMI cancellation guidance, HUD FHA MIP tables, VA funding-fee guidance, IRS Form 1098 instructions, and Fannie Mae conventional MI servicing rules.

PMI Calculator

Estimate your Private Mortgage Insurance cost based on your loan details and credit score.

%
LTV Ratio
90.0%Low
PMI Rate
0.58%
Monthly PMI
$152.25
Annual PMI Cost
$1,827
Full Monthly Payment
$2,666.17
Total PMI Paid
$14,921
PMI Duration
8y 2m
Principal to 80% LTV
$35,000
Current-Value LTV
90.0%
Original-Value LTV Now
90.0%

Total PMI paid uses the modeled starting monthly PMI premium for each month until borrower-requested cancellation at 80% original-value LTV. Actual servicer charges, mortgage-insurer pricing, refund timing, and approval requirements can differ from this planning estimate.

Monthly Payment Comparison

ScenarioDown PaymentLoan AmountMonthly P&IMonthly PMIFull PITI + HOA
Your Scenario (10.0% down)$35,000$315,000$2,043.08$152.25$2,666.17
20% Down (No PMI)$70,000$280,000$1,816.07$0.00$2,286.91
Property Tax
$320.83
Home Insurance
$150.00
HOA / Condo
$0.00
Extra Cost vs 20% Down
$96,644
over life of loan
Monthly Difference
$379.26
higher with PMI

PMI Removal Timeline

Loan StartPMI Drops OffLoan End
Request at 80%: 8 yrs 2 mo
Auto-cancel at 78%: 9 yrs 4 mo
Under the Homeowners Protection Act, you can usually ask your servicer in writing to cancel PMI when the balance is scheduled to reach 80% of original value; automatic termination generally happens at 78% if the loan is current. If you entered a current principal balance, the removal action cards use that balance for today's request math. Waiting for automatic cancellation would cost about $2,132 more PMI in this scenario.

PMI Removal Action Plan

80% Request Path
$35,000 principal gap
Balance must be at or below $280,000 for an 80% original-value request.
78% Auto-Termination Path
$42,000 principal gap
Automatic termination is usually based on the scheduled 78% original-value date when the loan is current.
Appraisal / Current-Value Path
$43,750 value gap
Current home value would need to be about $393,750 for an 80% current-value LTV review.
Servicer request letter starter
To: Mortgage Servicer
Subject: Private mortgage insurance cancellation review

Please review my loan for PMI cancellation. My original property value was $350,000, my estimated current principal balance is $315,000, and my calculated original-value LTV is 90.0%.

Please confirm the required balance/date for borrower-requested cancellation at 80% LTV, the scheduled automatic termination date at 78% LTV, and whether an appraisal or other valuation is required for current-value cancellation.

Compare PMI vs FHA MIP vs 80-10-10 Piggyback

OptionFull Monthly PaymentMortgage InsuranceBest For
Conventional + PMI$2,666.17$152.25/mo until 80% LTVMost borrowers with 620+ credit who can remove PMI later.
FHA + MIP$2,683.22$133.55/mo at 0.50% annual MIP + $5,513 upfrontLower credit score or higher DTI; HUD duration model: 11 years.
80-10-10 Piggyback$2,641.90$0 PMI; second loan at ~9.00%Buyers with 10% down comparing PMI against a second mortgage.
Estimates use the same property tax, insurance, HOA, and first-mortgage rate inputs above. FHA MIP and second-mortgage pricing vary by lender.
The “Sweet Spot” -- Avoid PMI Entirely
You need an additional $35,000 in down payment to reach 20% ($70,000) and avoid PMI completely. This would save you $14,921 in total PMI costs and $152.25/month on your payment.

Eliminate PMI Faster with Extra Payments

See how different extra payment amounts shorten your PMI period:
Extra/MonthPMI DurationMonths SavedPMI Savings
$0 (baseline)8y 2m----
+$1006y 4m22 mo$3,350
+$2005y 3m35 mo$5,329
+$3004y 5m45 mo$6,851
+$5003y 5m57 mo$8,678

PMI Rate Reference Table

Credit Score95-97% LTV90-95% LTV85-90% LTV80-85% LTV
760+0.55%0.41%0.30%0.19%
740-7590.68%0.52%0.37%0.25%
720-7390.80%0.65%0.46%0.31%
700-7190.95%0.78%0.58%0.39%
680-6991.15%0.96%0.72%0.48%
660-6791.45%1.21%0.92%0.61%
640-6591.78%1.50%1.15%0.78%
620-6392.25%1.86%1.42%0.98%
Rates shown are modeled annual PMI premiums as a percentage of the original loan amount. Your actual quote may vary by lender, insurer, occupancy, property type, DTI, loan program, and market conditions. Your current rate is highlighted: 0.58%.

PMI Cancellation Rules: 80%, 78%, and Current-Value Review

The calculator estimates when PMI may become removable, but the servicer still applies the legal, investor, and loan-specific requirements. CFPB describes the common 80% written-request path and 78% automatic-termination path for many conventional mortgages, while Fannie Mae servicing guidance adds current-value and payment-history requirements for loans it owns or services under its rules.

PathTriggerBorrower actionKey requirements
Borrower-requested cancellation80% of original valueSend a written request to the servicer when the scheduled or actual principal balance reaches the 80% threshold.Current payments, good payment history, no junior liens if required, and evidence that the property value has not declined if the servicer asks.
Automatic termination78% of original valueServicer generally terminates PMI on the scheduled date if the loan is current.If the loan is not current, termination can wait until payments are brought up to date.
Current-value reviewInvestor/servicer LTV rulesAsk the servicer whether appreciation or documented property improvements can support an appraisal-based review.Fannie Mae servicing guidance can require acceptable payment history, BPO/appraisal evidence, seasoning, and lower LTV thresholds depending on the reason for the value change.

Sources reviewed June 2, 2026: CFPB PMI cancellation guidance and Fannie Mae Servicing Guide B-8.1-04. FHA, VA, lender-paid mortgage insurance, and piggyback loans follow different rules.

How PMI Is Calculated

Monthly PMI is the loan amount multiplied by the annual PMI rate, then divided by 12. The hard part is the rate: mortgage insurers and lenders price it by LTV, credit score, loan term, occupancy, property type, debt-to-income ratio, and loan program. This calculator exposes those moving pieces instead of using one flat percentage for every borrower.

Monthly PMI = loan amount x annual PMI rate / 12
Worked example

$360,000 x 0.58% / 12 = $174/mo

This example uses a $400,000 home, 10% down, 90% LTV, and the calculator's 700-719 credit score PMI rate band.

Down PaymentLTVLoan Amount760+ Score700-719 Score640-659 Score
3%97%$388,000$178/mo$307/mo$576/mo
5%95%$380,000$130/mo$247/mo$475/mo
10%90%$360,000$90/mo$174/mo$345/mo
15%85%$340,000$54/mo$111/mo$221/mo

Example assumes a $400,000 purchase and the calculator's conventional borrower-paid PMI planning table. Use the calculator above for your exact home price, down payment, credit score band, taxes, insurance, and HOA.

Quick PMI Cost Estimates by Home Price

Searchers often want a fast answer before filling out every field. These estimates use a 700-719 credit score band and the calculator's conventional borrower-paid PMI rate table. Your lender quote can differ, but the table shows the monthly payment pressure created by 5%, 10%, and 15% down payments.

Home Price5% Down10% Down15% Down20% Down to Avoid PMI
$300,000$185/mo$131/mo$83/mo$60,000
$400,000$247/mo$174/mo$111/mo$80,000
$500,000$309/mo$218/mo$138/mo$100,000
How to read the shortcut table

Smaller down payments usually increase both loan amount and PMI rate band.

A 10% down payment on a $400,000 home creates a $360,000 loan. At the modeled 0.58% annual PMI rate, the quick estimate is $174 per month. The full calculator adds taxes, insurance, HOA, DTI, extra principal, and cancellation timing.

Cost of PMI on a $300,000 Mortgage

The fastest way to calculate PMI is to multiply the loan amount by the annual PMI rate and divide by 12. For a $300,000 mortgage, the monthly PMI estimate is about $145/month at a 0.58% annual rate, $288/month at 1.15%, and $563/month at 2.25%.

Treat the table as a planning range, not a lender quote. Conventional PMI pricing changes with LTV, credit score, term, occupancy, property type, DTI, lender overlays, and mortgage-insurer pricing.

Formula

$300,000 x 0.58% / 12 = $145/mo

Use the full calculator for PITI, taxes, insurance, HOA, DTI, extra principal, and PMI removal timing.

Loan Amount0.19% PMI0.58% PMI1.15% PMI1.80% PMI2.25% PMI
$250,000$40/mo$121/mo$240/mo$375/mo$469/mo
$300,000$48/mo$145/mo$288/mo$450/mo$563/mo
$350,000$55/mo$169/mo$335/mo$525/mo$656/mo
$400,000$63/mo$193/mo$383/mo$600/mo$750/mo

Understanding Private Mortgage Insurance (PMI)

Everything you need to know about PMI costs, removal, and how it affects your monthly mortgage payment

What Is PMI and How Much Does It Cost?

Private mortgage insurance (PMI) is a risk-priced monthly cost on many conventional loans above 80% LTV. The calculator's model ranges from 0.19% to 2.25% of the loan amount annually, depending on credit score and LTV. Under federal PMI cancellation rules, borrowers can generally request cancellation at 80% of original value and automatic termination usually occurs at 78%.

PMI is a type of mortgage insurance that lenders require when a homebuyer makes a down payment of less than 20% of the home's purchase price. PMI protects the lender -- not the borrower -- in case the borrower defaults on the loan. While it adds to your monthly housing costs, PMI makes homeownership possible for millions of buyers who cannot afford a large down payment upfront.

The cost of PMI varies significantly based on two primary factors: your loan-to-value (LTV) ratio and your credit score. This calculator uses a transparent conventional PMI planning table so you can see the direction and size of that effect instead of relying on a flat percentage. Actual quotes can move higher or lower because insurers and lenders also price by occupancy, property type, debt-to-income ratio, loan program, and market conditions.

When Is PMI Required?

PMI is required on many conventional mortgage loans whenever the down payment is less than 20% of the home's appraised value or purchase price (whichever is lower). This means a loan-to-value ratio above 80% will often carry PMI. The requirement applies to purchases and can also apply to refinances where the homeowner has less than 20% equity.

It is important to note that FHA loans have their own mortgage insurance premium (MIP), which works differently from conventional PMI. HUD's current FHA table lists a 1.75% upfront MIP for most forward mortgages and annual MIP rates that vary by loan term, base loan amount, and LTV. VA loans do not require monthly mortgage insurance, though eligible borrowers should still compare total closing costs and VA funding fees.

How to Remove PMI From Your Mortgage

The Homeowners Protection Act (HPA) of 1998 provides two key mechanisms for PMI removal on conventional loans:

  • Borrower-requested cancellation: You can request PMI removal once your loan balance reaches 80% of the original home value, provided you meet requirements such as being current, having good payment history, and making the request in writing.
  • Automatic termination: Your lender must automatically cancel PMI when your loan balance is scheduled to reach 78% of the original value, based on the original amortization schedule.
  • Final termination: PMI must be canceled at the midpoint of the loan term (e.g., year 15 on a 30-year mortgage), regardless of balance.

To speed up PMI removal, you can make extra principal payments each month to reach the 80% threshold faster. Use the extra payment calculator above to see exactly how much time and money you can save. Another option is to request a new appraisal if your home has significantly appreciated in value, which could push your LTV below 80% sooner than expected.

PMI Cancellation Request Checklist

If the calculator shows your balance near the 80% request threshold, the next step is a clean servicer request package. CFPB says many borrowers can ask for PMI cancellation in writing when the principal balance is scheduled to reach 80% of original value, subject to requirements such as being current and having a good payment history.

Find the first cancellation date
Use your PMI disclosure form or servicer statement to confirm when the scheduled principal balance reaches 80% of original value.
Send the request in writing
CFPB lists a written request as part of borrower-requested PMI cancellation, so do not rely only on a phone call.
Show the 80% LTV math
Include original value, current balance, and the calculation that shows the loan is at or below the 80% request threshold.
Confirm payment status
Your request is stronger when you are current and can show a good payment history.
Address junior liens
Be ready to certify whether there is a second mortgage, HELOC, or other junior lien if the servicer requires it.
Prepare valuation evidence
The servicer may ask for evidence that the property value has not declined below the original value, such as an appraisal.

Common reasons a PMI request stalls

  • Using current market value when the rule being applied is based on original value.
  • Asking before the scheduled 80% date without showing extra principal payments or investor-specific appraisal rules.
  • Assuming FHA MIP, VA funding fee, lender-paid MI, or a second mortgage follows the same rules as conventional borrower-paid PMI.
  • Missing the servicer requirement to be current before automatic 78% termination actually takes effect.

Questions to Ask Your Lender or Servicer About PMI

The calculator shows the math, but the lender or servicer controls the final quote and the removal workflow. Before choosing a loan or sending a PMI cancellation request, get the answers in writing so you can compare the monthly payment, cash to close, APR, 80% request path, 78% automatic path, and any current-value appraisal rules against the same assumptions.

What mortgage-insurance structure is this quote using?
Borrower-paid monthly PMI, lender-paid MI, single-premium MI, split-premium MI, FHA MIP, and piggyback loans can all change the monthly payment and removal path.
What annual PMI rate and monthly dollar amount are assumed?
A dollar quote without the annual rate makes it hard to compare offers or audit loan amount x PMI rate / 12.
What are my 80% request balance and scheduled 78% automatic-termination date?
CFPB describes both paths for many conventional loans, but the servicer should confirm the loan-specific dates and balance thresholds.
Can appreciation or improvements support early cancellation?
Current-value reviews can require seasoning, acceptable payment history, a BPO or appraisal, and stricter LTV thresholds under investor rules.
What happens if I refinance, modify, or make large extra principal payments?
The PMI removal path can change when a new loan, modified schedule, or accelerated principal balance changes the servicer review.
Will any unearned premium be refunded after termination?
Some mortgage-insurance structures can involve refunds or escrow adjustments; the servicer should explain timing and method in writing.

When to Take Action on PMI

PMI is not just a monthly line item. It can change the best down payment, whether FHA or conventional is cheaper, whether a piggyback loan is worth the risk, and when to contact the servicer after extra principal payments or home appreciation.

SignalAction
You are choosing between 5%, 10%, 15%, and 20% downCompare monthly PMI, total PMI paid, cash preserved, and whether the bigger down payment creates a better emergency reserve.
Your current balance is near 80% of original valuePrepare a written cancellation request and ask the servicer for the exact 80% request date, balance, and documentation requirements.
Your home value increased materiallyAsk whether current-value cancellation is available and what appraisal, seasoning, payment-history, and LTV rules apply.
FHA payment looks lower than conventionalCompare upfront MIP, annual MIP duration, refinance path, and total cash to close against conventional PMI.
Lender-paid MI removes the PMI line itemCompare the higher rate and long-term interest cost against removable borrower-paid monthly PMI.

How Long PMI Lasts by Down Payment

The removal clock depends on the original value, starting LTV, interest rate, loan term, and whether extra principal payments are made. The examples below use a $400,000 purchase, 30-year fixed loan, 6.75% interest rate, and no extra principal payments, so they are planning estimates rather than servicer guarantees.

Down Payment80% Request Date78% Auto-TerminationWhat It Means
3%About 11.4 yearsAbout 12.3 yearsPMI stays longer because the starting LTV is 97%.
5%About 10.6 yearsAbout 11.6 yearsStill a long runway unless extra principal is paid.
10%About 8.2 yearsAbout 9.3 yearsA 10% down payment removes roughly three years versus 3% down.
15%About 4.8 yearsAbout 6.4 yearsThe buyer starts close to the 80% request threshold.

CFPB notes that many borrowers can request cancellation at the scheduled 80% threshold and that automatic termination generally occurs at the scheduled 78% threshold when the borrower is current. If your loan is backed by FHA, VA, Fannie Mae, Freddie Mac, or has lender-paid mortgage insurance, the rules can differ.

Removal PathValue UsedExample Target BalanceImportant Caveat
Original-value 80% request$400,000 original purchase/appraised value$320,000This is the clean HPA-style calculation many borrowers use for scheduled or principal-paydown cancellation.
Scheduled 78% automatic termination$400,000 original purchase/appraised value$312,000Automatic termination is generally tied to the scheduled amortization date, not just a one-day balance snapshot.
Current-value appraisal path$500,000 current appraised value$400,000Servicer and investor rules can be stricter here. Treat appreciation as a separate review path, not a guaranteed shortcut.

Types of Mortgage Insurance

There are several types of mortgage insurance, each with different cost structures and rules:

  • Borrower-Paid PMI (BPMI): The most common type. You pay a monthly premium that is added to your mortgage payment. It can be canceled once you reach 80% LTV.
  • Lender-Paid PMI (LPMI): The lender pays the PMI in exchange for a higher interest rate on your loan. The downside is that you cannot remove it -- you would need to refinance to eliminate the higher rate.
  • Single-Premium PMI: You pay the entire PMI cost upfront at closing as a lump sum. This can be financed into the loan but may not be refundable if you sell or refinance early.
  • Split-Premium PMI: A combination approach where you pay part upfront and part monthly, resulting in a lower monthly cost than standard BPMI.
  • FHA Mortgage Insurance Premium (MIP): Required on most FHA loans, with upfront and annual premiums set by HUD's FHA mortgage insurance table. Duration can be 11 years or the mortgage term, depending on the loan structure.

PMI vs FHA MIP vs VA Funding Fee vs Piggyback Loan

The cheapest low-down-payment mortgage is not always the one with the lowest monthly insurance line item. Compare the full payment, upfront cost, removal rules, and refinance risk before choosing a structure.

OptionInsurance or feeRemoval ruleBest fit
Conventional loan with borrower-paid PMIRisk-priced monthly PMIBorrower can usually request at 80%; automatic termination generally at 78%Borrowers with solid credit who expect to remove PMI later instead of keeping lifetime insurance.
FHA loan with MIP1.75% upfront MIP plus annual MIP based on HUD term/LTV tableOften 11 years or the mortgage term, depending on LTV, term, and loan sizeBorrowers who need FHA flexibility on credit, DTI, or down payment.
VA loanNo monthly mortgage insurance; VA funding fee may apply unless exemptNo monthly MI to removeEligible Veterans, service members, and surviving spouses comparing low-down-payment options.
80-10-10 piggybackNo PMI, but a second mortgage payment at a separate rateSecond loan must be paid down, refinanced, or keptBorrowers with 10% down who can qualify for two loans and want to compare total monthly cost.

Is PMI Tax-Deductible in 2026?

For tax year 2026, qualified mortgage insurance premiums can again be treated as deductible mortgage interest when the borrower meets the tax rules. Congressional Research Service summarizes that Public Law 119-21 allows mortgage insurance premiums to be considered mortgage interest starting in 2026, and the IRS 2026 Form 1098 instructions include qualified mortgage insurance premiums in Box 5 reporting when the applicable Internal Revenue Code section applies.

That does not mean every borrower gets a dollar-for-dollar benefit. You generally need to itemize deductions, the mortgage insurance must qualify, and income and mortgage-interest limits can affect the result. The calculator estimates the insurance cost; a CPA or tax professional should confirm the deduction on your actual return.

How Credit Score Affects PMI Rates

Your credit score is one of the most influential factors in determining your PMI rate. In the calculator model, a borrower in the highest credit score band receives a much lower PMI estimate than a borrower in the lowest band at the same LTV. Improving credit before purchasing can reduce both mortgage insurance and rate-related costs, especially when you are borrowing above 90% LTV.

Frequently Asked Questions About PMI

How is PMI calculated?

Monthly PMI is calculated as loan amount multiplied by the annual PMI rate, divided by 12. For example, a $360,000 loan with a 0.58% annual PMI rate equals about $174 per month. The annual PMI rate is usually risk-priced by LTV, credit score, loan term, occupancy, property type, DTI, and lender or mortgage insurer rules.

Is this a mortgage payment calculator with PMI, taxes and insurance?

Yes. The calculator estimates principal and interest, property tax, homeowners insurance, HOA dues, monthly PMI, full PITI payment, housing DTI, total DTI, and PMI removal timing. It is built for searches like mortgage calculator with PMI and taxes, house payment calculator with PMI, and free mortgage payment calculator with taxes insurance and PMI.

How do I calculate PMI on a $300,000 mortgage?

Use the formula loan amount x annual PMI rate / 12. On a $300,000 mortgage, a 0.19% annual PMI rate is about $48 per month, 0.58% is about $145 per month, 1.15% is about $288 per month, 1.80% is about $450 per month, and 2.25% is about $563 per month. Your quote depends on LTV, credit score, property type, occupancy, DTI, lender and insurer pricing.

What is an average PMI rate in 2026?

There is no single average PMI rate that fits every conventional loan. For planning, strong-credit lower-LTV borrowers may model PMI below 0.50% annually, many mid-band examples fall around 0.50%-1.00%, and higher-LTV or lower-credit scenarios can be well above 1.00%. Use the calculator table as a planning estimate and confirm final pricing with the lender or mortgage insurer.

How much does PMI cost on a mortgage?

Private mortgage insurance commonly costs a fraction of the loan amount each year, with the exact rate driven by credit score, loan-to-value ratio, down payment, loan term, occupancy, property type, and lender or insurer pricing. The calculator uses a transparent conventional PMI rate table so borrowers can see how much the monthly payment changes as credit score and LTV change.

When does PMI go away on a mortgage?

For many conventional mortgages covered by the Homeowners Protection Act, CFPB explains that borrowers can ask their servicer to cancel PMI when the principal balance is scheduled to reach 80% of the original home value, and automatic termination generally occurs when the balance is scheduled to reach 78%, as long as the borrower is current.

What should I include in a PMI cancellation request?

CFPB explains that borrower-requested PMI cancellation is a written request. A practical request package should include your loan number, current principal balance, original home value, the scheduled or actual 80% LTV calculation, confirmation that payments are current, confirmation that there are no junior liens if required, and any appraisal or valuation evidence the servicer asks for.

What should I ask my lender before relying on a PMI quote?

Ask whether the quote is borrower-paid monthly PMI, lender-paid MI, single-premium MI, split-premium MI, FHA MIP, or another structure. Then ask for the annual PMI rate, monthly dollar amount, cancellation date, 80% request balance, 78% automatic-termination date, appraisal rules, refund rules, and whether the quote changes with credit score, DTI, occupancy, property type, or lender credits.

How can I avoid paying PMI on my mortgage?

The most direct way to avoid conventional PMI is to make a down payment of at least 20%. Other options include lender-paid mortgage insurance with a higher rate, a single-premium PMI structure, an 80-10-10 piggyback loan, or a VA loan for eligible borrowers. Each option should be compared by total monthly payment, cash to close, break-even timing, and refinance risk.

What is the difference between PMI and FHA mortgage insurance?

PMI applies to many conventional loans and can usually be canceled after enough equity is reached. FHA mortgage insurance premium (MIP) is different: HUD Mortgagee Letter 2023-05 lists a 1.75% upfront MIP for most FHA forward mortgages and annual MIP rates that vary by term, loan amount, and LTV. FHA MIP may last for 11 years or the full mortgage term depending on the loan structure.

Does a VA loan require monthly mortgage insurance?

The Department of Veterans Affairs states that VA loans require no monthly mortgage insurance, though most borrowers pay a VA funding fee unless exempt. Eligible borrowers should compare the funding fee, rate, closing costs, and monthly payment against conventional PMI and FHA MIP.

Is PMI tax-deductible in 2026?

For tax year 2026, qualified mortgage insurance premiums can be treated as deductible mortgage interest under the restored federal mortgage insurance premium deduction. Public Law 119-21 applies the change to taxable years beginning after December 31, 2025. The practical value depends on whether you itemize deductions, your income, whether the mortgage insurance qualifies, and other limits. IRS Form 1098 instructions also include qualified mortgage insurance premiums in Box 5 reporting when the relevant Internal Revenue Code section applies. Verify your own return with a tax professional.

How accurate is this PMI calculator?

The calculator is designed for planning, not a final lender quote. It models conventional PMI by credit score and LTV, adds full PITI costs, estimates 80% request and 78% automatic cancellation timing, and compares FHA MIP and piggyback options. Actual PMI quotes can differ because insurers and lenders price by additional factors such as debt-to-income ratio, property type, occupancy, loan program, and market conditions.

Key PMI Statistics

0.19%-2.25%
Modeled Annual PMI Range
Conventional PMI planning table
78% LTV
Automatic PMI Cancellation
Federal PMI auto-termination threshold
$150/mo
Modeled PMI on $300K Loan
Modeled 10% down example
8-11 Years
Typical Time to Remove PMI
Typical 30-year amortization range
4.5x
PMI Cost Difference: 760 vs 620 Score
Model sensitivity at 90%-95% LTV
0.50%-0.75%
FHA Annual MIP Range (30-Year Table)
Source: HUD Mortgagee Letter 2023-05

Why This PMI Calculator Goes Beyond Flat Estimates

Amortio goes beyond flat PMI estimates by factoring in credit score range, LTV ratio, down payment, full PITI costs, and PMI removal timing. A flat percentage can be directionally useful, but it often hides the exact affordability problem borrowers need to solve: the combined monthly cost of principal, interest, taxes, insurance, HOA, and mortgage insurance.

The modeled PMI table shows why credit score and LTV need to be calculated together. At the same 90%-95% LTV band, the lowest credit score band in the model can be more than four times the highest credit score band. That gap is large enough to change affordability, DTI, and whether waiting to improve credit is worth more than buying immediately.

The calculator also compares conventional PMI against FHA MIP and an 80-10-10 piggyback structure. For buyers with limited down payment, that comparison is often more valuable than a single PMI number. Use it with your DTI ratio, home affordability, down payment strategy, and PMI removal guide to complete your mortgage readiness assessment.

Disclaimer: This PMI calculator provides estimates based on modeled conventional PMI rates and public FHA/VA rules. Actual PMI costs vary by lender, insurer, loan program, and other factors. Always consult with your lender for exact PMI quotes. Last updated: June 2026.