PMI is the cost of buying with less than 20% down, and buyers tend to either fear it or ignore it. This PMI calculator for agents shows the monthly premium, when it drops off as the loan is paid down, and the total paid along the way. It turns 'should we wait until we have 20%?' into a decision with numbers on both sides.
On conventional loans, borrowers can generally request PMI cancellation when the balance reaches 80% of the home's original value, and it ends automatically at 78% under the Homeowners Protection Act, if payments are current. The calculator estimates when that happens on the original schedule. Extra payments or appreciation can make it sooner.
Waiting can make sense, but it has a cost: rent paid and prices that may move. Show the total PMI paid over its lifetime against how long it would take to save the rest. Then the buyer is weighing two real figures.
First-time buyers on starter homes are most likely to put down less than 20%. A PMI calculator next to the payment shows them the insurance cost and its end date.
FHA mortgage insurance works differently and can last longer. Run this alongside the FHA loan calculator so buyers see the difference before they talk to a lender.
The buyer enters the home price, down payment, rate, term and annual PMI rate. They see when PMI drops off, the monthly PMI, the current loan-to-value, the loan amount, total PMI paid and the monthly principal and interest.
The lead you receiveThe lead shows the Home Price, Down Payment and rate, Monthly PMI, Total PMI Paid and when PMI Drops Off. A buyer looking at this is weighing timing and cash, so they're usually closer to buying than they think.
PMI came out around $175 a month and drops off in about eight years on the regular schedule. Saving the full 20% would take you about three more years of rent, so it's worth comparing those two side by side.
The same figures your visitor sees arrive in your lead record. Here's how to read the ones that matter.
PMI rates depend on credit score, loan-to-value and the insurer. Present the rate as an assumption, and let lenders quote the actual figure.
FHA uses its own mortgage insurance premium with different rules and durations. Use the FHA calculator for FHA loans.
Removing PMI early based on appreciation depends on lender rules, seasoning and an appraisal. Mention it as a possibility, not a promise.
Loan Details
PMI Settings
Field names are shown as they appear in the calculator's English interface.
Estimates only. PMI applies to conventional loans above 80% loan-to-value. Under the Homeowners Protection Act it ends automatically when your scheduled balance reaches 78% of the original value (or at the loan's midpoint), and you can ask to cancel it at 80%. Rates depend on your credit and loan-to-value — confirm with your lender.
Calculator results are estimates for illustration, not Loan Estimates, pre-approvals or offers of credit.
The annual PMI rate times the loan amount, divided by 12. For example, 0.55% on a $382,500 loan is about $175 a month. The rate depends on credit and loan-to-value, so treat the default as an assumption.
Under the Homeowners Protection Act, PMI on most conventional loans ends automatically when the balance reaches 78% of the original value on the original schedule. Borrowers can request removal at 80% if they meet the lender's requirements.
This calculator uses the original schedule. The mortgage calculator models extra payments, which bring the 80% and 78% points forward.
Not necessarily. PMI lets buyers purchase sooner with less cash. Whether it's worth it depends on how long saving would take, rent in the meantime and price trends. The calculator shows the PMI side of that comparison.
Some programs allow seller-paid or lender-paid mortgage insurance structures, subject to limits. That's a question for the buyer's lender before you include it in an offer.
It's insurance that protects the lender, not the buyer, when the down payment is under 20%. The buyer pays for it, and it usually ends once they have enough equity.
On first-time buyer pages, entry-level listings and down payment articles. It works well as a second tab beside the mortgage calculator in a widget.
Yes. Set a typical rate for your market's credit profile in the calculator settings. Visitors can change it.
Yes. The PMI calculator runs in English and Spanish.
Included on every plan, including the free Agent plan. No card needed.