PMI Calculator
Avoid paying thousands of dollars in unnecessary insurance. Calculate your monthly Private Mortgage Insurance (PMI) cost and discover the exact month your lender is legally required to cancel it.
Last updated: February 26, 2026
How To Remove PMI From Your Loan
By law, your servicer must automatically terminate PMI on the date when your principal balance is scheduled to reach 78% of the original value of your home, assuming your payments are current. This is standard amortization, calculated entirely based on your closing disclosures.
You have the right to request PMI cancellation in writing on the date the principal balance falls to 80% of the original home value. You can aggressively pay down your principal balance early to reach this 80% threshold years before the bank's automatic timeline.
If home values in your neighborhood have skyrocketed, or if you've done substantial remodeling (creating "sweat equity"), your home may now be worth much more. If you can prove via a new appraisal that your current loan balance is now less than 80% of the *new* value, lenders generally drop PMI.
Understanding The Real Cost of PMI
Private Mortgage Insurance accomplishes a single task: it protects the lender. If you default on your home loan and the bank is forced to foreclose, the bank loses money if they have to sell the house quickly at a massive discount. PMI ensures that a separate insurance company cuts the bank a check to cover those losses.
Because of this massive risk to the lender, they force you to pay the premium if you don't have enough "skin in the game" (at least 20% equity).
Average PMI Rate by Credit Score
| Credit Score Range | Estimated Annual Rate * |
|---|---|
| 760+ (Excellent) | 0.38% |
| 740 - 759 (Very Good) | 0.50% |
| 720 - 739 (Good) | 0.63% |
| 700 - 719 (Moderate) | 0.81% |
| 680 - 699 (Fair) | 1.05% |
| 660 - 679 (Poor) | 1.45% |
| < 660 (Very Poor) | 1.80%+ |
* Rates assume a fixed-rate 30-year mortgage with a 95% LTV. Subject to individual lender variation.
Is it worth paying PMI to buy a house faster?
Often, yes. While throwing away $150 a month on insurance feels painful, saving a 20% down payment (e.g., $80,000 on a $400,000 home) could take you 5+ years. In those 5 years, historical property appreciation may raise the cost of that same house to $480,000. In this scenario, paying a few thousand dollars in temporary PMI actually saves you tens of thousands of dollars in lost equity growth and inflation.
Frequently Asked Questions
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