PMI Calculator
See what private mortgage insurance adds to a conventional loan, and the dates you can cancel it and it must end under federal law.
- Loan-to-value
- 90.0%
- PMI if you request
- $14,250
- PMI if automatic
- $16,350
- Saved by requesting
- $2,100
When PMI comes off
Each date is the last payment that includes PMI.
| Milestone | Last PMI payment | Time |
|---|---|---|
| You can request cancellationBalance reaches 80% of original value | October 2034 (#95) | 7 yr 11 mo |
| Ends automaticallyBalance scheduled to reach 78% | December 2035 (#109) ← applies | 9 yr 1 mo |
| Final terminationMidpoint of the loan term | November 2041 (#180) | 15 yr 0 mo |
With 20% or more down, the loan starts at or below 80% of the home's value, so a conventional lender does not normally require PMI.
For the full monthly payment with taxes and insurance, use the mortgage calculator. FHA loans charge MIP instead: see the FHA loan calculator.
How PMI is priced and when it ends
Borrower-paid PMI on a conventional loan is usually quoted as a yearly percentage of the amount you borrowed, paid in twelve monthly instalments. On a $360,000 loan, a 0.5% rate is $1,800 a year, or $150 a month. The rate is set when you take out the loan and depends mostly on your credit score and how much you put down. This calculator assumes the monthly premium stays the same until PMI ends, which is the most common arrangement; check your loan documents if yours declines over time.
The Homeowners Protection Act of 1998 sets the end dates, measured against the home's original value: the lower of what you paid and what it appraised for. Once your balance reaches 80% of that value, you can ask your servicer in writing to cancel PMI. When the balance is scheduled to reach 78%, the servicer must stop charging it without being asked. And if neither has happened, it must end after the midpoint of the loan term.
The 80% and 78% rules work differently with extra payments. The request date follows your actual balance, so paying extra brings it forward. The automatic date follows the original amortization schedule, so it stays put. If you pay ahead, put the request in writing as soon as you cross 80%; otherwise you will keep paying PMI until the scheduled 78% date.
A request at 80% also needs a good payment history and, if the lender asks, proof the home has not lost value. A loan the lender classes as high-risk is exempt from the 80% and 78% rules, but its PMI still has to end at the midpoint. At closing, you should receive the scheduled 80% and 78% dates in writing, and your servicer must send a yearly notice of your right to cancel.
Frequently asked questions
What is PMI?
Private mortgage insurance protects the lender, not you, if you stop paying a conventional mortgage. Lenders usually require it when the down payment is less than 20% of the home's value, meaning the loan-to-value ratio is above 80%. It is normally added to your monthly payment.
How much does PMI cost?
Freddie Mac puts it at roughly $30 to $70 a month for every $100,000 borrowed, which is about 0.36% to 0.84% of the loan a year. Your rate depends mainly on your credit score, your down payment and the loan type, and your lender's Loan Estimate shows the actual figure. This calculator uses 0.5% as a starting point; replace it with your quote.
When does PMI come off?
Under the Homeowners Protection Act, there are three dates. You can ask in writing to cancel PMI once your balance is scheduled to fall to 80% of the home's original value, or reaches it sooner through extra payments, as long as you are current, have a good payment history, have no second mortgage, and can show the value has not dropped. The servicer must end it automatically when the balance is scheduled to reach 78%, if you are current. And it must end the month after the midpoint of the loan term no matter what. "Original value" is the lower of the purchase price and the appraisal.
Do extra payments get rid of PMI sooner?
They bring forward the date you can request cancellation, because that date follows your actual balance. They do not move the automatic 78% date, which is fixed by the loan's original amortization schedule. To benefit from extra payments, you need to send the cancellation request yourself.
Can I remove PMI if my home has gone up in value?
Sometimes. The 80% and 78% rules in the law use the original value, so appreciation does not count toward them. Many lenders and loan investors do allow removal based on a new appraisal, but that is their policy rather than a legal right, and they set the conditions. Ask your servicer what they require.
Does this apply to FHA or VA loans?
No. FHA loans charge a mortgage insurance premium (MIP) instead. For most new 30-year FHA loans it is 0.55% a year with less than 5% down and 0.50% with 5% or more, and it lasts 11 years if you put at least 10% down or the whole life of the loan otherwise; see the FHA loan calculator. VA loans have no monthly mortgage insurance but charge an upfront funding fee. The Homeowners Protection Act covers conventional loans on a principal residence closed on or after July 29, 1999.