Mortgage Payment With PMI
When your down payment is under 20%, lenders usually add private mortgage insurance. Set a lower down payment below to see the effect.
| Component | Monthly |
|---|---|
| Principal & interest | — |
| Property tax | — |
| Home insurance | — |
What is PMI?
Private mortgage insurance protects the lender if you put down less than 20% on a conventional loan. It's an extra monthly cost — typically 0.3% to 1.5% of the loan amount per year — added on top of principal, interest, taxes, and insurance. The calculator above is preset to a 10% down payment to reflect a common PMI scenario; raising the down payment to 20% in the field removes the need for PMI.
How to avoid or remove PMI
The simplest way to avoid PMI is a 20% down payment. If you already have a loan with PMI, you can usually request its removal once your loan balance falls to 80% of the home's original value, and it typically drops off automatically at 78%. Rising home values can also help you reach that threshold sooner.
Is PMI always bad?
Not necessarily. PMI lets you buy sooner with a smaller down payment, which can make sense in a rising market or when waiting to save 20% would cost more in rent and missed appreciation. Weigh the monthly PMI cost against the benefit of buying now.