If you put less than 20% down on a conventional mortgage, your lender will usually charge private mortgage insurance (PMI).
PMI Calculator
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This calculator estimates your monthly PMI, shows when you can ask to cancel it and when it ends automatically, and lets you test how extra principal payments get you there faster.
How PMI removal works
- At 80% loan-to-value: under the federal Homeowners Protection Act, you can ask your servicer to cancel PMI once your balance reaches 80% of the home’s original value, if you’re current on payments and have a good payment history. Extra payments get you there sooner.
- At 78%: PMI ends automatically when your loan is scheduled to reach 78% of the original value.
- At the midpoint: PMI also ends at the halfway point of the loan term, even if you haven’t hit 78%.
- New appraisal: some lenders will drop PMI early if your home’s value has risen, based on a new appraisal and their own rules.
Frequently asked questions
How much does PMI cost?
Annual PMI often falls somewhere around 0.3% to 1.5% of the loan amount, depending on your credit score, down payment and loan type. Your Loan Estimate shows the exact monthly amount.
Do FHA loans have PMI?
FHA loans charge a mortgage insurance premium (MIP) instead, with an upfront fee and an annual premium that can last for the life of the loan. Use the mortgage calculator to estimate FHA MIP.
Related: FHA vs. Conventional Loans, Home Affordability Calculator, First-Time Homebuyer Programs.