Down Payment & PMI Calculator
See exactly how your down payment affects your monthly payment, PMI cost, and when PMI will be removed.
Down Payment & Private Mortgage Insurance
PMI is required on conventional loans when your down payment is less than 20%. It protects the lender — not you — in case of default. The cost ranges from 0.5% to 1.2% of the loan per year, paid monthly.
When Does PMI End?
Under the Homeowners Protection Act, PMI must be automatically cancelled when your loan balance reaches 78% of the original purchase price. You can request removal at 80%. You can also accelerate removal by making extra principal payments or getting a new appraisal if values have risen.
Is It Worth Putting 20% Down?
A 20% down payment eliminates PMI entirely, reduces your monthly payment, lowers your interest over time, and demonstrates financial stability to lenders. However, depleting savings for a larger down payment can leave you vulnerable. Consider your full financial picture.
- How much does PMI cost?
- PMI typically costs 0.5%–1.2% of the loan amount annually. On a $350,000 loan, that's roughly $145–$350/month. Lenders set exact rates based on credit score, LTV, and loan type.
- Can I avoid PMI with less than 20% down?
- Yes — through VA/USDA loans (if eligible), lender-paid PMI (higher rate instead), an 80-10-10 piggyback loan, or FHA loans (which have their own MIP instead of PMI).