PMI Calculator
Calculate your monthly PMI cost, see when it automatically cancels at 80% LTV, and understand your full escrow breakdown.
Loan Parameters
Loan Amount
$405,000
Above 80% — PMI required
PMI Cancellation
Aug 2034
$253.13/mo
Monthly Payment Breakdown
Total PMI Paid
$23,794
Over 95 months until cancellation
Principal vs. Interest Over Time
Private Mortgage Insurance (PMI) Explained
Private mortgage insurance (PMI) protects the lender, not the homeowner, in the event of loan default. It is typically required when your down payment is less than 20% of the property value, resulting in a loan-to-value (LTV) ratio above 80%. The monthly cost of PMI depends on the loan amount, LTV, interest rate, and credit score, and typically ranges from 0.3% to 1.5% of the loan balance per year.
How to Remove PMI
The Homeowners Protection Act of 1998 requires lenders to automatically cancel PMI when your LTV reaches 80% of the original property value, provided your payments are current. You can also request PMI cancellation manually when you reach 80% LTV through extra principal payments or property appreciation, though this requires a formal appraisal.
PMI Cancellation Timeline
With a 10% down payment on a $450,000 home at 6.5% interest, PMI typically cancels around month 110-120, depending on whether you make extra payments. The total PMI cost over that period can exceed $15,000. Our calculator shows you exactly when you will hit 80% LTV and how much you will pay in PMI before cancellation.