How this calculator works
This is a premium estimate for US conventional mortgages, using a quoted annual rate times the opening mortgage balance. It does not automatically select a premium from credit score or cancel coverage at a particular LTV. Canadian default insurance has a different premium structure and is not modelled here.
Formula
Loan = home price - down payment. Annual PMI = loan × annual PMI rate. Monthly PMI = annual PMI / 12. Implied annual rate = annual premium / loan. LTV = loan / home price.
Worked example
A US$400,000 home with US$40,000 down has a US$360,000 loan and 90% LTV. At a quoted 0.5% annual PMI rate, the premium is US$1,800 a year or US$150 a month.
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Frequently asked questions
Does a 20% down payment always eliminate PMI?
PMI is commonly required below 20% down on conventional US loans. The calculator applies the quoted premium even if your particular loan does not require it; enter zero when appropriate.
Does the premium stay constant?
Not necessarily. This is an opening-balance estimate. Your insurer and servicer determine the actual premium and cancellation process.
Is this FHA mortgage insurance?
No. FHA has upfront and annual MIP rules. Use the FHA calculator for that loan type.