PMI Calculator
Calculate your monthly PMI cost, how long until PMI drops, and your total PMI expense over the loan life.
Understanding PMI in 2026
Private Mortgage Insurance (PMI) is required on conventional loans when the down payment is less than 20% of the purchase price. It protects the lender (not you) against default. PMI typically costs 0.5-1.5% of the loan amount annually — on a $400,000 loan, that's $167-$500/month added to your payment.
The Homeowners Protection Act requires lenders to automatically cancel PMI when your loan balance reaches 78% of the original purchase price, based on scheduled payments. However, you can request cancellation at 80% LTV — potentially a year or two earlier. If your home has appreciated significantly, you may qualify for early removal via a new appraisal.
Is PMI Worth Paying?
Despite the added cost, PMI allows buyers to purchase homes sooner with 5-10% down rather than waiting years to save 20%. In an appreciating market, the equity gains from buying earlier can far outweigh the cumulative PMI cost. If home prices rise 4% annually on a $450,000 home, delaying one year to avoid PMI costs you $18,000 in missed appreciation.