🏠 PMI Calculator
Estimate monthly Private Mortgage Insurance cost and when PMI can be removed.
What Is PMI and How Do You Avoid It?
Private Mortgage Insurance protects the lender if you default. It's required on conventional loans when the down payment is below 20%. PMI typically costs 0.5–1.5% of the loan amount annually, adding $83–$250/month on a $200,000 loan. PMI is NOT permanent — it's automatically cancelled when your loan balance reaches 78% LTV and can be requested at 80% LTV.
How to Eliminate PMI Faster
Make extra principal payments to reach 80% LTV sooner. If your home has appreciated significantly, request an appraisal and PMI cancellation — the 80% LTV threshold is calculated on the original purchase price OR current appraised value. A $50,000 appreciation can eliminate PMI years early without any extra payments.
People Also Ask
You can request cancellation at 80% LTV (20% equity). Your lender must cancel automatically at 78% LTV. If your home has appreciated significantly, you can request a new appraisal and cancel PMI even if you haven't paid down 20% of the original purchase price. There is typically a minimum of 2 years of payments required before cancellation based on appreciation.
No — FHA loans require Mortgage Insurance Premium (MIP) which differs from conventional PMI. FHA MIP includes an upfront premium (1.75% of loan) plus an annual premium (0.15–0.75% depending on loan term and LTV). FHA MIP on loans with down payments under 10% now lasts the life of the loan — it cannot be cancelled.