🛡️ PMI Calculator

Estimate your monthly Private Mortgage Insurance (PMI) cost, your current loan-to-value (LTV) ratio, and the exact month your PMI will automatically terminate under the federal Homeowners Protection Act. Not financial advice — for planning purposes only.

Estimated Monthly PMI

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Annual PMI — Current LTV — Total PMI Until 78% Auto-Termination —

PMI Removal Milestones

Milestone	Month #	Year	Remaining Balance	Cumulative PMI Paid

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What Is PMI and Why Do Lenders Require It?

Private Mortgage Insurance (PMI) is an insurance policy that protects the lender — not you — if you default on a conventional loan with less than 20% down payment. Lenders view low-down-payment loans as higher risk, since less equity means less cushion if home values fall or the borrower stops paying. PMI typically costs 0.3%-1.5% of the original loan amount annually, billed monthly as part of your mortgage payment. The exact rate depends heavily on your credit score, down payment size, and loan type: a 760+ credit score borrower might pay 0.46% annually, while a 620-679 borrower on the same loan could pay 1.30% or more — nearly triple. On a $360,000 loan, that difference is roughly $138/month versus $390/month. PMI is distinct from homeowners insurance (which protects your property) and from FHA mortgage insurance premium (MIP), which follows different, often less favorable, removal rules. Understanding your PMI cost and removal timeline helps you budget accurately and avoid paying more than necessary. Use our mortgage calculator to see how PMI fits into your full monthly payment alongside principal, interest, taxes, and insurance.

The 78% Automatic Termination Rule (Homeowners Protection Act)

The federal Homeowners Protection Act of 1998 requires mortgage servicers to automatically terminate PMI on conventional loans once your loan balance is scheduled to reach 78% of the original home value (not current market value), based on the original amortization schedule, as long as you are current on payments. This is a legal right — you do not need to request anything, and the servicer must cancel it automatically at the halfway point of your amortization curve where equity crosses that threshold. The catch: the 78% figure is calculated against the original purchase price or appraised value at closing, not any later appreciation. If your home has gained value faster than your equity has built through payments, you may be able to remove PMI even earlier by requesting a new appraisal (see the 80% borrower-request rule below). Our calculator amortizes your loan month by month to show you the exact month and year your balance drops to 78% of your home price, which is the guaranteed automatic termination point under law.

The 80% Borrower-Request Cancellation Option

Separate from the mandatory 78% automatic termination, the Homeowners Protection Act also gives borrowers the right to request PMI cancellation once the loan balance reaches 80% of the original home value — typically a few months earlier than automatic termination. To exercise this right, you generally need to submit a written request to your servicer, be current on payments, have a good payment history, and in some cases prove you have no other liens against the property. Some servicers may require a new appraisal to confirm the current value if you are requesting early cancellation based on appreciation rather than scheduled amortization. Because this route requires borrower action rather than happening automatically, many homeowners miss it and pay 6-12 extra months of PMI unnecessarily. Our table shows both the 80% request milestone and the 78% automatic milestone side by side so you know exactly when to call your servicer.

How Credit Score Affects Your PMI Rate

PMI pricing is risk-based, meaning your credit score band has a direct and often dramatic effect on your monthly premium. Borrowers with scores of 760 or above typically qualify for the lowest PMI rates, often around 0.3-0.5% annually. As scores drop into the 700-759 range, rates climb to roughly 0.5-0.7%. The 680-699 band often sees rates near 0.9%, and borrowers in the 620-679 range — the minimum many conventional lenders will approve — can pay 1.2-1.5% or more. On a $400,000 loan, the gap between the best and worst bands can exceed $300/month, or over $3,600 per year. This is one of the strongest arguments for improving your credit score before applying: paying down revolving balances, disputing errors, and avoiding new credit inquiries in the months before your mortgage application can meaningfully lower your PMI cost for years. Since PMI rate tiers are somewhat coarse (a jump from 699 to 700 can shift your entire pricing band), even a small credit score improvement timed correctly can save thousands over the life of the loan.

How Down Payment Size Changes the PMI Picture Entirely

The single biggest lever over PMI is your down payment. Putting down 20% or more on a conventional loan eliminates PMI entirely from day one — lenders do not require it once your loan-to-value ratio starts at or below 80%. Between 20% down and 3% down (the minimum for many conventional programs), PMI cost scales up because lower down payments mean higher perceived risk and a longer runway before the 78%/80% removal thresholds are reached. For example, a $400,000 home with 10% down ($40,000) starts at 90% LTV and may take 8-10 years to amortize down to 78%, while the same home with 15% down starts at 85% LTV and could reach 78% in half that time or less. Some buyers choose a "piggyback loan" (e.g., 80-10-10 structure: 80% first mortgage, 10% second mortgage, 10% down) specifically to avoid PMI altogether, trading it for a second loan with its own interest rate. Before choosing this route, compare the total cost of PMI over your expected removal timeline against the interest cost of a second mortgage — PMI is often the cheaper option if you plan to reach 20% equity within a few years.

FHA MIP vs Conventional PMI: A Critical Difference

This calculator models conventional PMI, which follows the Homeowners Protection Act removal rules described above. FHA loans work very differently: they charge a mortgage insurance premium (MIP) that, for most FHA loans originated with less than 10% down since 2013, lasts for the entire life of the loan regardless of how much equity you build. The only way to remove FHA MIP in that scenario is to refinance into a conventional loan once you have enough equity (typically 20%) and sufficient credit to qualify without PMI, or pay off the loan entirely. If you took out an FHA loan with 10% or more down, MIP is removed after 11 years. This is a major reason many FHA borrowers plan an early refinance to conventional financing once rates and equity allow — see our sibling tools like the mortgage calculator and amortization calculator to model that scenario and estimate your break-even point.

How to Actively Remove PMI Faster Than Scheduled

You are not required to wait passively for the 78% automatic termination date. Making extra principal payments accelerates amortization and pulls both the 80% and 78% thresholds earlier — our biweekly mortgage calculator shows how an extra payment strategy can shave years off your loan and, as a side effect, remove PMI sooner. Home value appreciation is another lever: if your home’s market value has risen significantly since purchase, you may already be above 80% equity on paper even though your amortization schedule alone hasn’t reached that point. In that case, you can request an appraisal (typically $400-600) and ask your servicer for early cancellation based on current value rather than waiting for scheduled amortization. Renovations that add documented value (a new roof, updated kitchen, finished basement) can also support this appraisal-based approach. Always request PMI cancellation in writing and keep records — servicers do not always proactively notify you the moment you cross a threshold, especially for the borrower-initiated 80% request.

よくある質問

When does PMI automatically end?

By federal law (Homeowners Protection Act), your servicer must automatically terminate PMI once your loan balance is scheduled to reach 78% of the original home value, as long as you are current on payments. Our calculator shows the exact month and year this happens for your loan.

Can I remove PMI earlier than the 78% automatic point?

Yes. You can request cancellation once your balance reaches 80% of the original home value (a borrower-initiated request, typically in writing to your servicer), or earlier if your home has appreciated enough to reach 80% equity based on a new appraisal.

Do I need PMI if I put down 20% or more?

No. Conventional loans do not require PMI when the down payment is 20% or more, since your starting loan-to-value ratio is already at or below 80%.

Is PMI the same as homeowners insurance?

No. PMI protects the lender if you default; homeowners insurance protects you and your property from damage, theft, and liability. You need both if your down payment is under 20%.

How is FHA mortgage insurance different from conventional PMI?

FHA loans charge a mortgage insurance premium (MIP) that, for most loans with under 10% down since 2013, lasts for the life of the loan. It does not automatically terminate at 78% LTV like conventional PMI — refinancing to a conventional loan is usually the only removal path.

Is this calculator financial advice?

No. This tool provides estimates for planning purposes only, based on the inputs you provide and typical industry PMI rate ranges. Actual PMI rates, removal timing, and eligibility are determined by your lender and loan servicer. Consult a licensed mortgage professional for advice specific to your situation.