REI Utility
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Buyers

PMI Calculator

Private Mortgage Insurance (PMI) is usually required if you put less than 20% down on a conventional loan. Find out exactly how much PMI will cost you every month.

How to use this calculator

  1. Enter your home price and down payment amount (or %).
  2. Select your loan type (Conventional or FHA).
  3. Choose your estimated credit score range.
  4. Hit Calculate to see your estimated monthly and annual PMI costs.

What your results mean

PMI protects the lender, not you, in case you default. The cost varies from 0.3% to 1.5% of your original loan amount annually, heavily dependent on your credit score and down payment percentage.

5 tips to avoid or reduce PMI

  • The obvious one: save up a 20% down payment before buying.
  • Look into 80/10/10 piggyback loans (an 80% first mortgage, 10% second mortgage, 10% down).
  • Improve your credit score. A 760+ score pays significantly less PMI than a 680 score.
  • Consider Lender-Paid Mortgage Insurance (LPMI), where you take a slightly higher interest rate instead of a monthly PMI fee.
  • If you're an eligible veteran, VA loans require $0 down and have no PMI.

Frequently asked questions