PMI Calculator
PMI, or private mortgage insurance, is a cost some lenders add when the down payment is small. This shows the monthly cost, and how many years until the loan balance falls to the level you choose.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
The loan is the price minus the down payment. The insurance is a yearly percent of the loan, split across twelve months. The balance after each payment follows the standard loan formula, and the page finds the month it reaches the level you set, measured against the price.
Set that level to the figure in your loan terms. Rules differ by lender and loan type, so check the actual terms before you plan around them.
Worked example
On a $400,000.00 home with 5% down, the loan is $380,000.00. Mortgage insurance adds $158.33 a month. By this math it can end after about 10.3 years, once the balance is 80% of the price.
Questions
When can mortgage insurance end?
Many loans let it end once the balance reaches a set share of the home's value. Ask your lender for the exact rule and whether you can ask to remove it sooner.
Is the insurance rate always the same?
No. Quotes depend on the loan, the down payment and the borrower, so type in the rate from your own quote.
Does this include the rest of the payment?
It shows the insurance, plus principal and interest on the loan. Property tax and home insurance are not included.
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