PMI Calculator
Estimate your private mortgage insurance cost and find out when it drops off.
Remove PMI Faster
Extra payments go directly to principal, building equity faster. The extra amount is in addition to your regular monthly payment.
Understanding Private Mortgage Insurance (PMI)
Private mortgage insurance (PMI) is required by lenders when you make a down payment of less than 20% on a conventional mortgage. PMI protects the lender — not you — in case you default on the loan. It typically costs between 0.5% and 1.5% of your loan amount per year, added to your monthly mortgage payment.
The most straightforward way to avoid PMI is to make a 20% down payment. On a $350,000 home, that means putting $70,000 down. For many buyers, especially first-time buyers, that is not realistic. The good news is that PMI is temporary — it drops off automatically when your loan balance reaches 78% of the original purchase price, or you can request removal at 80% (20% equity).
You can accelerate PMI removal by making extra principal payments each month. Even an additional $100-$200 per month can shave years off your PMI timeline and save thousands in total PMI costs. Use the table above to see how different extra payment amounts affect your timeline.
Some alternatives to conventional PMI include lender-paid mortgage insurance (LPMI), where the lender charges a higher interest rate instead of a separate PMI payment, and piggyback loans (80-10-10), where you take a second mortgage to avoid PMI. VA loans never require PMI, and FHA loans charge their own mortgage insurance premium (MIP) which works differently. Compare all your options before choosing.