Published Last updated
PMI Calculator 2026 — Estimate Cost and Removal Timeline
Private mortgage insurance on a conventional loan is priced by credit score and loan-to-value, and it can come off automatically. Estimate your PMI cost and see when 80% and 78% LTV milestones arrive.
Private mortgage insurance (PMI) applies to conventional loans with less than 20% down and is priced roughly 0.3% to 1.5% of the loan balance annually based on credit score and loan-to-value. Under the Homeowners Protection Act, you can request cancellation at 80% of original value, and the servicer must cancel automatically at 78% if payments are current.
- ✓PMI applies to conventional loans with a down payment under 20%.
- ✓Annual PMI cost is generally 0.3% to 1.5% of the loan balance, priced by credit score and LTV.
- ✓You can request cancellation at 80% LTV based on original value, subject to a current payment history and, in some cases, a new appraisal.
- ✓Automatic cancellation is required at 78% LTV based on original value under the Homeowners Protection Act.
- ✓Rising home values can sometimes let you request early PMI removal sooner than your amortization schedule alone would suggest.
What this means for you: PMI is not permanent — tracking your loan-to-value ratio can help you remove it years earlier than automatic cancellation would.
Written by
Simply Approved Mortgages Team
Licensed Loan Officers · NMLS# 2620881
Get your personalized scenario summary
Complete the short request and a Simply Approved Mortgages Loan Officer sends back a written summary built from your own numbers: estimated payment breakdown, estimated cash to close, the loan structures that fit your file, and what documentation the file will need.
- Estimated monthly payment with taxes and insurance
- Estimated cash to close for your scenario
- Loan options your profile may fit
- Document checklist for your file
Takes about 3 minutes · Summary shown on screen and emailed to you
Illustration only, generated from the information you enter. Not a rate quote, lock, loan estimate, pre-qualification, offer, approval, or commitment to lend. Figures are subject to credit, income, asset and property review and full lender underwriting; binding numbers appear on your Loan Estimate.
Scenario summary
- Purchase price entered
- $412,000
- Down payment entered
- $20,600
- Estimated loan amount
- $391,400
- Estimated cash to close
- $14,300
- Programs reviewed
- 4
Sample layout with example figures — your own numbers replace these. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
First-time buyer tool
PMI vs FHA MIP calculator
Put in a home price, down payment, and credit tier. See how conventional PMI and FHA mortgage insurance change your monthly payment — and how much extra cash you would need to put 20% down and skip insurance entirely.
Your scenario
20% down
No PMI / MIPNo mortgage insurance required. Lowest monthly payment, but highest cash at closing.
Conventional 10% down
PMIPMI auto-drops at 78% LTV per the Homeowners Protection Act. PMI rate estimate: 0.35% annually.
FHA 10% down
MIPIncludes 1.75% UFMIP financed. Annual MIP 0.50% — stays for life of loan when original LTV > 90%.
Figures are illustrative only — not a quote, lock, offer, or commitment to lend. Conventional PMI rates vary by mortgage insurer, credit score, and LTV. FHA Annual MIP rates; UFMIP is 1.75% of the base loan amount and is typically financed. Binding figures appear on your Loan Estimate after a complete application. Simply Approved Mortgages LLC, NMLS# 2620881. Equal Housing Opportunity.
Next steps
Emailing your PMI vs FHA MIP calculator scenario opens our secure request form so a Simply Approved Mortgages Loan Officer can review those numbers. Estimates are illustrative and are not a quote, lock, offer, or commitment to lend.
Assumptions, methodology, and limitations
Monthly mortgage insurance equals the annual factor times the loan amount divided by 12; FHA figures add financed upfront MIP to the base loan.
Actual PMI factors depend on credit score, loan-to-value, occupancy, and the insurer; FHA MIP duration depends on loan-to-value and term.
Results are illustrative estimates only and are not a quote, lock, offer, or commitment to lend. No rate, APR, or program approval is implied. Binding figures appear on your Loan Estimate. Eligibility, terms, and availability vary by borrower, property, lender, loan program, and state.
Run your scenario with a loan officer
Share your numbers and a Simply Approved Mortgages Loan Officer sends back an estimated payment, estimated cash to close, and the structures that fit your file. Educational only — not a quote, lock, offer, or commitment to lend.
What PMI is and why it exists
Private mortgage insurance protects the lender, not the borrower, against loss if a conventional loan with less than 20% down goes into default. Because a smaller down payment means less initial equity cushion, PMI allows lenders to approve these loans while managing risk. It is billed monthly, added to your escrowed mortgage payment, and is separate from homeowners insurance, which protects the physical property.
How PMI cost is calculated
PMI is priced by private mortgage insurers, and the rate depends primarily on your credit score and your loan-to-value ratio at closing. Borrowers with strong credit and a down payment closer to 20% typically see PMI in the lower part of the range, often well under 0.5% annually. Borrowers with lower credit scores and a smaller down payment can see PMI rates well above 1% annually. The calculator above estimates a rate based on your credit tier and down payment.
The 80% and 78% LTV milestones
The Homeowners Protection Act of 1998 (12 U.S.C. § 4901 et seq.) created two important thresholds:
- 80% LTV — borrower-requested cancellation: Once your loan balance reaches 80% of the home's original value, you can submit a written request to your servicer to cancel PMI. You generally need a current payment history, and the servicer may require confirmation that the property value has not declined, sometimes through a new appraisal.
- 78% LTV — automatic cancellation: Once your loan balance reaches 78% of the home's original value based on your amortization schedule, the servicer is required to automatically cancel PMI as long as you are current on payments, without you needing to request it.
Both thresholds are calculated against the home's original value at closing, not its current market value, unless you specifically request a new appraisal-based recalculation for early removal.
Can rising home values speed up PMI removal?
Yes, in some cases. If your home has appreciated meaningfully, your actual current loan-to-value could already be at or below 80% even though your amortization schedule alone has not reached that point. Many servicers allow a borrower-requested cancellation based on a new appraisal showing current value, though there are often minimum seasoning requirements (commonly around two years) and the borrower usually pays for the appraisal. This path will not apply to every loan or investor, so confirm your servicer's specific policy.
Want these numbers built around your file?
A short request is all it takes to get a written scenario summary back from a Simply Approved Mortgages Loan Officer. Binding figures appear on your Loan Estimate.
PMI versus FHA MIP
Conventional PMI and FHA mortgage insurance are structured very differently. PMI has no upfront premium, is priced by credit and LTV, and is required to cancel under the schedule above. FHA MIP includes an upfront premium plus an annual premium that, for most borrowers with less than 10% down, lasts the life of the loan and does not cancel through an LTV milestone the way PMI does. Borrowers choosing between the two programs should weigh long-term insurance cost alongside qualification flexibility.
Options to avoid or reduce PMI
Putting 20% or more down avoids PMI entirely. Some borrowers use a piggyback structure, such as a first mortgage plus a second lien, to reduce the first loan's LTV below 80% and avoid PMI, though this adds a second monthly payment and its own costs. Lender-paid mortgage insurance is another structure where the lender covers the PMI cost in exchange for a slightly higher interest rate — you never see a separate PMI line item, but you also cannot cancel it the way borrower-paid PMI cancels, since it is built into the rate for the life of the loan unless you refinance.
How a Simply Approved Mortgages Loan Officer helps
Whether PMI makes sense for your file, how it compares with FHA MIP or a piggyback structure, and how soon you might qualify for early cancellation are all scenario-specific questions. A Simply Approved Mortgages Loan Officer can review your numbers and outline a plan for removing PMI as early as your loan terms allow.
Figures shown are illustrative only and not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
What you can do with this loan
Estimate your monthly PMI cost based on credit tier and down payment.
See how PMI compares with FHA MIP on the same purchase price.
Understand when you can request PMI cancellation versus when it cancels automatically.
Model how a larger down payment reduces or eliminates PMI.
Plan a refinance or appraisal-based cancellation strategy if your home has appreciated.
Pros & cons — honest tradeoffs
Pros — Pros & cons
- +Allows a conventional purchase with less than 20% down.
- +Priced competitively for borrowers with strong credit.
- +Cancels automatically at 78% LTV without requiring lender approval.
- +Can be requested for early removal at 80% LTV with a clean payment history.
- +No upfront premium, unlike FHA UFMIP.
Cons / watch-outs — Pros & cons
- −Can be costly for borrowers with lower credit scores and smaller down payments.
- −Adds to your monthly payment until the LTV thresholds are reached.
- −Lender-paid PMI structures cannot be canceled without refinancing.
- −Appraisal-based early cancellation is not guaranteed by every servicer or investor.
- −A declining home value can delay reaching the LTV thresholds needed for cancellation.
Compare loan officer compensation on your mortgage quote
Loan officer compensation is part of the cost of a mortgage. On eligible residential loans, Simply Approved Mortgages generally uses 1.5% lender-paid compensation. Enter the compensation shown on another lender's Loan Estimate to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs, so you may bring less cash to closing.
A lower rate means a lower monthly payment, which can lower your debt-to-income ratio and may help you qualify for more home on the same income.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank’s retail pricing.
Tip: On page 2 of your Loan Estimate, look at Section A, "Origination Charges." If the lender pays the loan officer, that compensation usually does not appear there as its own line; it is built into the interest rate. That is why comparing the rate and any lender credits side by side matters.
Already have a Loan Estimate from another bank or broker? Share it with a Simply Approved Mortgages Loan Officer, who will compare the rate, fees and credits side by side with options we can arrange. No cost to request a review.
Illustration only — not a quote, lock, offer, or commitment to lend; binding figures appear on your Loan Estimate. Lender-paid compensation is paid by the lender, not directly by you, and is part of the loan's pricing, so the loan is not free of costs. A lower compensation figure does not by itself guarantee a lower rate or lower closing costs; individual results vary by credit, loan type, property and market conditions. Residential lending in FL and CO only. Simply Approved Mortgages LLC · NMLS #2620881 · Equal Housing Opportunity.
Worked example
How this loan actually works — a full example
A borrower purchases a $420,000 home with 10% down and a 740 credit score on a 30-year conventional loan at an illustrative 6.5% rate.
Inputs
- Purchase price
- $420,000
- Down payment (10%)
- $42,000
- Loan amount
- $378,000
- Starting LTV
- 90%
Calculation
- 1Estimated annual PMI rate~0.55% (illustrative, credit-based)
- 2Estimated monthly PMI~$173/mo
- 3Balance needed for 80% LTV request~$336,000
- 4Balance for automatic 78% LTV cancellation~$327,600
Illustrative only — not a quote, lock, offer, or commitment to lend. Binding figures appear on your Loan Estimate.
Purchase market update
What buyers should know this month
30-Yr Fixed · national avg
—
Loading PMMS…
15-Yr Fixed · national avg
—
Loading PMMS…
2026 buying power
Conforming baseline: $832,750
FHA floor / ceiling: $541,287 – $1,249,125
Priced by credit and LTV
PMI rates generally run 0.3% to 1.5% of the loan balance per year.
Request cancellation at 80% LTV
A written request plus a clean payment history can remove PMI early.
Automatic cancellation at 78% LTV
Servicers must cancel PMI at this point if payments are current.
Cost and payment tools
Run your payment, affordability, closing cost and refinance numbers
Monthly payment, affordability, closing costs, refinance break-even and early payoff, all on one screen. This page is not written for one state, so property tax, insurance and transfer or recording charges start at neutral placeholder assumptions rather than published averages — Transfer, documentary-stamp and recording charges are set by your state and county — enter your own figure, or open the state page for a sourced seed. Insurance and tax assumptions vary widely by state, county and property, so replace these starting values with quotes for your address. Every figure is an illustrative estimate, not a quote, lock, offer, approval, or commitment to lend.
Your inputs
Estimated result
- Down payment
- $20,000
- Loan amount
- $380,000
- Principal & interest
- $2,402
- Property tax
- $333/mo
- Homeowners insurance
- $167/mo
- Estimated total monthly
- $2,902/mo
Reference sources: Tax Foundation — property taxes paid as a percentage of owner-occupied housing value, NAIC — Homeowners Insurance Report, CFPB — Understanding your Loan Estimate.
Assumptions, methodology, and limitations
Principal and interest use the standard amortization formula on the loan amount you enter. This page does not target a single state, so the property tax and insurance fields start at neutral placeholder assumptions rather than published averages — replace them with figures for your own address, or open the matching state page for sourced seeds. Closing costs apply your state's transfer / documentary-stamp practice (0.00% of price used as the buyer-side seed) plus typical title, recording, appraisal, credit and prepaid escrow lines. Refinance break-even divides your entered costs by the monthly payment difference. Early payoff runs a month-by-month amortization with your extra principal.
These tools do not include mortgage insurance, funding or guarantee fees, HOA special assessments, flood or windstorm premiums, seller credits, lender credits, discount points, or county and municipal charges specific to your parcel. Statewide averages will not match any individual property. Figures are estimates only.
Illustrative only. Binding figures appear on your Loan Estimate, and terms vary by borrower, property, lender, program, and state.
Turn these estimates into real numbers
Send your scenario to a Simply Approved Mortgages Loan Officer and get a written summary back, or compare where rates sit today. Educational only — not a quote, lock, offer, approval, or commitment to lend.
PMI calculator FAQs
Answers to the most common PMI calculator questions, written by licensed loan officers.
Ask SAM anything about mortgages
SAM is the Simply Approved Mortgages AI assistant. It answers general questions using the reviewed guides published on this site and links you to the primary government source. It is educational only — it does not quote a rate, payment, APR, approval or commitment to lend. A Simply Approved Mortgages Loan Officer reviews every scenario before any terms are confirmed.
Hi, I'm SAM — an AI assistant for Simply Approved Mortgages. I can explain loan programs, closing costs, DTI, down payments and which calculator or guide to use. I'm not a licensed loan officer, and nothing here is a quote, approval or commitment to lend.
Ask Sam AI provides general educational information only. It is an automated assistant, may be incomplete or out of date, and does not provide legal, tax or financial advice. Nothing it produces is a rate quote, APR, pre-approval, offer or commitment to lend. Never share a Social Security number, ITIN, date of birth, account number or password in chat. Simply Approved Mortgages LLC (NMLS #2620881) arranges residential mortgage loans in Florida and Colorado. Eligibility, terms, conditions and availability vary by borrower, property, lender, loan program and state, and all loans are subject to lender underwriting and approval. Equal Housing Opportunity.
Trusted government resources
These independent government resources can help you research mortgage programs, rates, and your rights before you apply.
Simply Approved Mortgages is not affiliated with HUD, the CFPB, the FTC, the VA, or any other government agency. Links are provided for your independent verification.
How this page connects
Where this fits in the conventional and agency lending library
This page sits inside our Conventional and agency lending coverage.
What most readers open next
- Conforming loan limitsBecause the ceiling that separates conforming from jumbo.
- How PMI worksBecause anything under 20% down carries it until it cancels.
- HomeReady low-down-payment financingBecause the income-eligible 3% down option.
- FHA versus conventionalBecause the comparison most buyers actually need.
Explore the full guide
Keep reading — the rest of the buying playbook
Each of these is a deep-dive on one piece of the purchase mortgage process. Bookmark whichever you need next.
Guide
How to Remove PMI
Step-by-step process for requesting PMI cancellation.
Read the guide →Guide
FHA Mortgage Insurance
UFMIP and annual MIP compared with conventional PMI.
Read the guide →Guide
Mortgage Payment Calculator
General PITI calculator for any loan type.
Read the guide →Guide
Conventional Loans
Full overview of conventional loan guidelines.
Read the guide →Guide
1% Down Mortgage
Low down payment conventional option.
Read the guide →Guide
Refinance Calculator
See if refinancing can remove PMI sooner.
Read the guide →Internal library
Related mortgage guides across our library
Follow the next relevant guide for your scenario.
Start My Approval
Complete this short request and a Simply Approved Mortgages Loan Officer will personally review your scenario. The form only asks what your program actually needs. Submitting it is not an application for credit and is not a commitment to lend.
What are you looking to do?
Pick one — the form adapts.Pick a loan type
Programs for buying a home.Conventional loan — 3–20% down · 620+ FICO
Tell us about your scenario
The form below is tailored to Conventional loan — only the questions and documents your program needs.
Simply Approved Mortgages LLC is licensed to arrange residential mortgage loans in Florida and Colorado only. We ask first so we never collect a mortgage inquiry we are not licensed to act on.
Purchase price and down payment help us size the conforming loan.
A range is enough here — no credit report is pulled and your credit is not affected.
Illustrative estimate only — not a quote, rate lock, offer of credit, or commitment to lend.
Submitting this form is not an application for credit and is not a commitment to lend. No credit report is pulled at this step.
Follow our reporting
Add Simply Approved Mortgages as a preferred source on Google
We update these guides as HUD, FHFA, VA, USDA and CFPB publish new figures. If you want our updates to show up more often when you search Google, you can mark us as a preferred source from the Top Stories carousel:
- 1Sign in to your Google account and search a mortgage topic such as "mortgage rates".
- 2Select the icon next to "Top stories" to open the preferred sources panel.
- 3Search for Simply Approved Mortgages, tick the box, and save.
Preferred sources is a Google Search feature controlled entirely by you and by Google. Simply Approved Mortgages LLC (NMLS #2620881) does not control search results and makes no representation about how or whether our content will appear. Educational content only — not a quote, lock, offer, or commitment to lend.
Simplify Your Mortgage Journey with These Resources
Talk To A Loan Officer
A Simply Approved Mortgages Loan Officer will personally connect with you to walk through your options.
Mortgage insights & guides
Plain-language articles to help you understand the home loan process, save on closing costs, and make confident decisions.
7 things every first-time homebuyer should know before applying
From credit prep to down payment assistance, here’s how to walk into your first mortgage application with confidence.
Using your VA loan benefit: a step-by-step guide
Eligibility, the Certificate of Eligibility, funding fees, and how to maximize zero-down purchasing power.
Where your closing costs actually go (and where you can save)
A line-by-line breakdown of the Loan Estimate and the fees that are negotiable versus fixed.
Equal Housing OpportunityMortgage Broker — Not a LenderNMLS ID# 2620881NMLS Consumer AccessFlorida Mortgage Broker License #MBR7685Colorado Mortgage Company RegistrationLicensing & Disclosures
Simply Approved Mortgages LLC | NMLS #2620881
Florida Branch Office (Miami, FL) | Branch NMLS #2688012
Florida Mortgage Broker License #MBR7685 | Colorado Mortgage Company Registration
Business Phone: (877) 813-7219
Equal Housing Opportunity
Broker identification. Simply Approved Mortgages LLC is a mortgage broker and is not a direct lender. We arrange residential mortgage loans with third-party wholesale lenders and do not make the lender's final credit decision or fund the loan. We arrange residential mortgage loans in Florida and Colorado. Business-purpose mortgage products may be arranged in additional states only where permitted by applicable law and pursuant to applicable licensing requirements or exemptions.
Credit and program terms. All loans are subject to lender credit approval, underwriting, acceptable appraisal or valuation when required, title review, insurance, and supporting documentation. Eligibility, programs, rates, APRs, points, lender credits, fees, payments, terms, loan amounts, down-payment requirements, mortgage insurance, and availability may vary based on borrower, property, occupancy, credit profile, loan-to-value ratio, debt-to-income ratio, lender, loan program, and state and may change without notice. Not all applicants, properties, products, or programs will qualify or be available in every state. Nothing on this site constitutes a loan approval, rate lock, offer, commitment to lend, guarantee of approval, or guarantee of terms or closing.
Rates, payments and calculators. Rates, APRs, payments, down payments, loan amounts, home values, estimated equity, savings, affordability estimates, closing costs, and other calculator or scenario results displayed on this site are estimates or illustrations unless expressly stated otherwise. Actual loan terms may differ. Taxes, homeowners insurance, mortgage insurance, association dues, lender charges, broker compensation, discount points, third-party charges, and other costs may apply. Advertised rates, payments, APRs, down payments, and other credit terms are subject to the assumptions and disclosures presented with the applicable advertisement. Applicable loan terms and disclosures will be provided as required for the particular transaction.
Mortgage products. FHA, VA, USDA, conventional, jumbo, non-QM, HELOC, reverse mortgage, down-payment-assistance, investment-property, DSCR, and other mortgage products referenced on this site are subject to their individual eligibility, underwriting, property, occupancy, and program requirements. Product availability varies by lender and jurisdiction. References to a mortgage product or program do not constitute a determination that a borrower or property qualifies.
Government-backed programs. Government-backed or government-insured mortgage programs referenced on this site may be subject to requirements established by the applicable government agency in addition to lender requirements. Government insurance or guaranties generally protect participating lenders against certain losses and do not constitute a guarantee of borrower approval.
Business-purpose products. DSCR, investment-property, and other business-purpose mortgage products referenced on this site are intended for qualifying business-purpose transactions. Business-purpose loans may be subject to different requirements and protections than consumer-purpose residential mortgage loans. Borrowers are responsible for accurately disclosing property occupancy and intended use.
Down payment assistance. Down payment or closing-cost assistance programs referenced on this site may be administered by governmental entities, housing finance agencies, nonprofit organizations, lenders, or other third parties. Program availability, funding, assistance amounts, eligibility requirements, repayment or forgiveness provisions, and other terms vary and may change or become unavailable without notice. Listing or referencing a program does not guarantee funding, eligibility, or mortgage approval.
Government affiliation. Simply Approved Mortgages LLC is not a government agency and is not affiliated with, acting on behalf of, sponsored by, or endorsed by HUD, FHA, VA, USDA, or any other federal, state, or local government agency. References to government agencies, programs, benefits, data, forms, or resources are provided for informational purposes and do not imply government sponsorship or endorsement of Simply Approved Mortgages LLC.
Fair lending. Equal Housing Opportunity. Simply Approved Mortgages LLC conducts business in accordance with applicable federal and state fair-housing and equal-credit-opportunity laws and does not discriminate on any prohibited basis.
No professional advice. Content on this site is educational and general in nature and is not legal, tax, accounting, financial, investment, estate-planning, or individualized government-benefits advice. Consumers should consult appropriate qualified professionals regarding their individual circumstances.
Third-party content. References or links to government agencies, lenders, assistance programs, products, services, or other third-party websites are provided for informational purposes or convenience. Simply Approved Mortgages LLC does not control and is not responsible for third-party content, availability, accuracy, or privacy practices.
NMLS Consumer Access: Verify Simply Approved Mortgages LLC, NMLS #2620881.
Simply Approved Mortgages LLC, 633 W 5th St, Ste 2600, Los Angeles, CA 90071 · 877-813-7219 · support@simplyapprovedmortgages.com. State licensing details available at the NMLS Consumer Access link above. © 2026 Simply Approved Mortgages LLC.