# What does mortgage insurance cost? Computes the monthly private mortgage insurance on a conventional loan from its yearly rate, and when it can be cancelled at 80% and ends by law at 78% of the home’s original value. - Page: https://www.acalculator.org/finance/pmi-calculator - JSON spec: https://www.acalculator.org/finance/pmi-calculator.json - Version: 964a5487a90c ## Default answer Example with the default inputs (Home price $400,000.00, Down payment $40,000.00, PMI rate (per year) 0.5%, Interest rate 6.5%, Loan term (years) 30, Loan start date September 30, 2026) on the example date Wednesday, September 30, 2026: On a $400,000.00 home with $40,000.00 down, PMI at 0.5% a year costs $150.00 a month for 109 months. ## Inputs | Key | Label | Description | | --- | --- | --- | | price | Home price | The price or the appraised value, whichever is lower: the home’s original value. | | down | Down payment | The cash you pay toward the price. PMI is charged when it is under 20%. | | pmi | PMI rate (per year) | The yearly PMI premium as a percent of the loan amount, from your lender’s quote. | | rate | Interest rate | The fixed yearly rate on the mortgage. It sets how fast the balance falls. | | years | Loan term (years) | The length of the mortgage, for example 30 or 15 years. | | start | Loan start date | The day the loan starts. The first payment is one month later. | ## Outputs | Key | Label | Description | | --- | --- | --- | | monthly | PMI a month | The yearly PMI rate × the loan amount ÷ 12, or 0 with 20% or more down. | | yearly | PMI a year | The monthly PMI × 12. | | months | Months of PMI | Payments with PMI until it ends automatically at 78% of the value, or at the loan’s midpoint. | | total | Total PMI | The monthly PMI × the months of PMI. | | request | Can ask to cancel after payment | The payment after which the scheduled balance reaches 80% of the original value, if PMI is still charged then. | | requestDate | Can ask to cancel from | The month of that payment, when a start date is given. | | endDate | Last PMI payment | The month of the last payment with PMI, when a start date is given. | | ltv | Loan-to-value | The loan as a percent of the home price. | | pi | Principal and interest | The level monthly mortgage payment. | | withPmi | Payment with PMI | Principal and interest plus the monthly PMI. | | note | Note | A note when the down payment is 20% or more, so no PMI is charged. | ## Method PMI a month = yearly rate × loan ÷ 12; it ends with the payment that brings the scheduled balance to 78% of the original value, and never after payment n ÷ 2; you may ask to cancel at 80%. ## Assumptions - The loan is a conventional fixed-rate loan with borrower-paid PMI charged monthly as a yearly percent of the original loan. - The original value is the price (or the appraised value, if lower). Dates follow the original schedule, with no extra payments. - The Homeowners Protection Act 78% and midpoint rules apply; you are current on payments. - FHA and VA loans have their own rules; see the FHA and VA loan calculators. ## Worked examples 1. price = $300,000.00, down = $30,000.00, pmi = 0.5%, rate = 7%, years = 30 gives monthly = $112.50, yearly = $1,350.00, months = 115, total = $12,937.50, request = 101, ltv = 90%. 2. price = $400,000.00, down = $40,000.00, pmi = 0.5%, rate = 6.5%, years = 30, start = 2026-10-01 gives monthly = $150.00, months = 109, total = $16,350.00, request = 95, requestDate = 2034-09-01, endDate = 2035-11-01. 3. price = $100,000.00, down = $5,000.00, pmi = 1%, rate = 12%, years = 30 gives monthly = $79.17, months = 180, total = $14,250.00. Source: Homeowners Protection Act midpoint rule: at 12% the balance is still above 78% at month 180, so PMI ends at the midpoint. 4. price = $400,000.00, down = $80,000.00, pmi = 0.5%, rate = 6.5%, years = 30 gives monthly = $0.00, months = 0, total = $0.00, note = With 20% or more down, a conventional loan needs no PMI.. Source: CFPB: PMI is usually required with less than 20% down. ## FAQ ### What is PMI and when do I have to pay it? Private mortgage insurance protects the lender, not you. Conventional lenders usually require it when you put down less than 20% of the price. FHA loans have their own mortgage insurance premium, and VA loans have none. ### How much does PMI cost? It depends on your credit score, down payment, and loan. Freddie Mac puts it at about $30 to $70 a month for every $100,000 borrowed, which is 0.36% to 0.84% of the loan a year. Enter the rate from your lender's quote; the default here is an example. ### When can I cancel PMI? Under the Homeowners Protection Act you can ask your servicer in writing to cancel it once the balance is scheduled to reach 80% of the home's original value, if you are current on payments, have a good payment history, and the home has not lost value. ### When does PMI end on its own? The servicer must end it automatically when the balance is scheduled to reach 78% of the original value, if you are current. It must also end by the month after the midpoint of the loan term (15 years on a 30-year loan), even if the balance is still higher. ### Does paying extra make PMI end sooner? The automatic 78% date follows the original schedule, so extra payments do not move it. But you can ask to cancel as soon as your actual balance reaches 80% of the original value, so extra payments can end PMI sooner that way. ### What is the original value of my home? For the Homeowners Protection Act it is the lower of the purchase price and the appraised value when you bought the home. A higher value today does not count toward automatic removal, though some lenders allow removal with a new appraisal. ## Sources - 12 U.S.C. 4901, Definitions (cancellation date at 80%, termination date at 78% of the original value, midpoint of the amortization period, original value). https://www.law.cornell.edu/uscode/text/12/4901 - 12 U.S.C. 4902, Termination of private mortgage insurance (borrower request, automatic termination, final termination at the midpoint). https://www.law.cornell.edu/uscode/text/12/4902 - Consumer Financial Protection Bureau, When can I remove private mortgage insurance (PMI) from my loan? https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/ - Freddie Mac, Breaking down PMI (about $30 to $70 a month per $100,000 borrowed). https://myhome.freddiemac.com/buying/breaking-down-pmi - Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3.