PMI Calculator
Calculate your Private Mortgage Insurance costs and find out when you can remove PMI based on your home equity and LTV ratio.
PMI Costs
Monthly PMI
Annual PMI
Total PMI Cost
Initial LTV Ratio
PMI Removal Timeline
Months Until Removal
Estimated Removal Date
Current Equity
Additional Equity Needed
Understanding Private Mortgage Insurance (PMI)
What is PMI?
Private Mortgage Insurance (PMI) is insurance that protects the lender if you default on your loan. It's typically required when you make a down payment of less than 20% of the home's purchase price. PMI is added to your monthly mortgage payment and increases your total housing costs.
How Much Does PMI Cost?
PMI typically costs between 0.3% and 1.5% of your original loan amount per year. The exact rate depends on your credit score, loan-to-value ratio, and loan type. For example, on a $300,000 loan with 0.5% PMI, you'd pay $1,250 per year or about $104 per month.
LTV Ratio (Loan-to-Value)
Your LTV ratio is calculated by dividing your loan amount by your home's value. As you pay down your mortgage and your home appreciates, your LTV decreases. You can request PMI removal when your LTV reaches 80%, and it automatically terminates at 78% LTV based on the original property value.
How to Remove PMI
You can remove PMI by: (1) Reaching 80% LTV through regular payments and appreciation, (2) Making extra principal payments to reach 80% LTV faster, (3) Getting a new appraisal if your home has appreciated significantly, or (4) Refinancing your mortgage when you have 20% equity.
Tips to Eliminate PMI Faster
- Make extra payments: Any additional principal payments help you reach 80% LTV faster
- Request a new appraisal: If your home has appreciated significantly, a new appraisal may show you've reached 20% equity
- Make home improvements: Strategic upgrades can increase your home's value and help you reach the equity threshold sooner
- Recast your mortgage: Some lenders allow you to make a lump-sum payment to reduce your loan balance and remove PMI
- Monitor your LTV: Keep track of your payments and home value to know when you're eligible to request PMI removal
- Consider refinancing: If rates have dropped or your home has appreciated significantly, refinancing might eliminate PMI
Note: This calculator provides estimates based on typical PMI rates and home appreciation assumptions. Actual PMI costs vary based on your credit score, down payment amount, loan type, and lender. PMI removal requirements differ by lender - some may require a new appraisal, a waiting period, or proof of on-time payments. The calculator assumes a 30-year fixed-rate mortgage and does not account for FHA mortgage insurance (MIP), which has different rules. Consult with your lender for specific details about your PMI terms and removal requirements.
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