Estimate the PMI cost when your down payment is below 20 percent.
PMI protects the lender and is required when the down payment is under 20 percent, keeping the loan-to-value above 80 percent. The monthly cost is the loan times the PMI rate divided by twelve. PMI adds a recurring cost that a higher down payment avoids, so it should factor into your down payment decision.
Private Mortgage Insurance
PMI monthly = loan x PMI rate / 12, only when LTV is above 80%
PMI monthly = loan x PMI rate / 12, only when LTV is above 80% PMI protects the lender and is required when the down payment is under 20 percent, keeping the loan-to-value above 80 percent. The monthly cost is the loan times the PMI rate divided by twelve.
PMI adds a recurring cost that a higher down payment avoids, so it should factor into your down payment decision.
This calculator takes 3 inputs: Home price, Down payment, PMI rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.