FINANCIAL & TAX CALCULATORS
PMI Calculator
Calculate your PMI accurately with this free online tool.
What is the PMI Calculator & How does it work?
Private Mortgage Insurance (PMI) is required by lenders when a borrower’s down payment is less than 20% of the home’s purchase price. This insurance protects the lender in case the borrower defaults on the mortgage.
The PMI rate typically ranges from 0.3% to 1.5% of the loan amount, depending on factors such as credit score and down payment percentage. The cost is usually included in your monthly mortgage payment.
The PMI rate typically ranges from 0.3% to 1.5% of the loan amount, depending on factors such as credit score and down payment percentage. The cost is usually included in your monthly mortgage payment.
PMI = frac{Loan Amount times PMI Rate}{12}
PMI = Monthly Private Mortgage Insurance
Loan Amount = The total amount borrowed
PMI Rate = The annual PMI rate (as a decimal)
Loan Amount = The total amount borrowed
PMI Rate = The annual PMI rate (as a decimal)
Parameters
Result—
Frequently Asked Questions
What is PMI?
PMI stands for Private Mortgage Insurance. It's required by lenders when the down payment is less than 20% of the home purchase price.
How do I calculate my monthly PMI cost?
Multiply your loan amount by the PMI rate, then divide by 12 to get the monthly cost.
What factors affect the PMI rate?
The PMI rate is influenced by factors such as credit score and down payment percentage. Higher rates are typically charged for lower credit scores or smaller down payments.
Can I cancel PMI once it's been added to my mortgage?
Yes, you can usually cancel PMI when your loan balance drops below 80% of the home's original purchase price or appraised value.
Is PMI included in my monthly mortgage payment?
Yes, PMI is typically added to your monthly mortgage payment and paid directly to the lender.
What is the average PMI rate?
The average PMI rate ranges from 0.3% to 1.5% of the loan amount, depending on factors like credit score and down payment percentage.
Can I negotiate the PMI rate with my lender?
In some cases, you may be able to negotiate a lower PMI rate with your lender, especially if you have a strong credit history or make a larger down payment.
Results are for informational purposes only and do not constitute professional advice.