PMI Calculator: How to Estimate Your Private Mortgage Insurance Cost
A PMI calculator estimates the added monthly cost of private mortgage insurance on a conventional loan with less than 20% down — a cost that's easy to underestimate if you're only looking at a basic principal-and-interest payment quote. What drives the PMI estimate PMI cost isn't a flat rate — it varies based on a few key factors: Loan-to-value ratio — how much is being borrowed relative to the home's value; a smaller down payment generally means a higher PMI rate Credit score — higher scores generally qualify for lower PMI rates, similar to how credit affects the interest rate itself Loan type and term — PMI rates can differ slightly by loan structure A rough way to estimate PMI before getting an exact quote PMI is commonly estimated as an annual percentage of the loan amount, divided into monthly payments — rates vary based on the factors above, but running a calculator with a reasonable estimated percentage gives a workable planning figure before an ...