Do all mortgages below 20% down require PMI?

No. PMI commonly applies to conventional loans, while FHA, VA, lender-paid, and other programs use different insurance or fee rules. Review the specific Loan Estimate.

When can a borrower request PMI cancellation?

For many covered mortgages, a borrower may request cancellation when scheduled principal reaches 80% of original value if applicable conditions are met. Automatic termination is generally tied to 78%, subject to current payments and other rules.

Does home appreciation remove PMI automatically?

Not necessarily. A servicer may require an appraisal, seasoning, payment history, or investor-specific standards before recognizing a higher value.

Is the PMI rate the same for every borrower?

No. Credit, LTV, loan type, occupancy, term, insurer, and other factors affect the premium. Use the actual quote when available.

Does the monthly result include closing costs or HOA dues?

No. It includes principal, interest, property tax, homeowners insurance, and modeled PMI. Closing cash and HOA dues must be considered separately.

Loans calculator

Down Payment & PMI Calculator

Estimate cash down, loan amount, starting LTV, monthly PMI, total PMI, and the scheduled point when principal may reach 80% of the original home value.

Formula: Shown below
Data: Stays private
Result: Updates live

Written by the ToolGrym Editorial Team

Last reviewed: July 19, 2026

Test method Primary sources

Calculation workspace

Enter your numbers

No submit button — results update as you type.

Estimated first monthly payment

$2,972.11

Principal, interest, property tax, insurance, and estimated PMI

Principal and interest: $2,275.44
Estimated monthly PMI: $180.00
Payment after PMI: $2,792.11

Cash down payment

$40,000

Starting loan amount: $360,000
Starting loan-to-value: 90%
Estimated PMI duration: 7 yr 11 mo
Estimated total PMI: $17,100

PMI rules vary by loan and servicer. This estimate uses scheduled principal reaching 80% of the original home value; appreciation and lender-specific cancellation requirements are not assumed.

Connect down payment, LTV, and monthly cost

The down payment determines the starting loan amount:

down payment = home price × down-payment percentage

loan amount = home price − down payment

Starting loan-to-value is the loan divided by the home price. A $400,000 home with $40,000 down produces a $360,000 loan and 90% LTV.

For many conventional mortgages, LTV above 80% can lead to borrower-paid private mortgage insurance. PMI protects the lender, not the borrower, even though the borrower pays the premium.

How this calculator models PMI

The tool applies the entered annual PMI percentage to the original loan and divides by twelve for a simple monthly estimate. It then follows the scheduled amortization balance until principal reaches 80% of the original home price. The result shows that request point, not a guarantee of cancellation.

For example, a $360,000 loan with a 0.6% annual PMI assumption produces about $180 per month:

$360,000 × 0.006 ÷ 12 = $180

Actual premiums can decline, remain level, or follow a different schedule. Use the PMI amount on a lender’s written estimate whenever possible.

Request cancellation and automatic termination differ

The CFPB explains that many covered borrowers can request cancellation when the scheduled principal reaches 80% of original value, subject to conditions including a written request, current payments, good payment history, no disqualifying junior lien, and evidence that value has not declined. General automatic termination is tied to the scheduled 78% point when the borrower is current.

FHA and VA loans, lender-paid mortgage insurance, investment-property loans, and investor guidelines can differ. This calculator deliberately labels its output as an estimate and models the 80% request threshold.

Is 20% down automatically better?

A larger down payment reduces the loan, principal-and-interest payment, and possible PMI. It also uses cash that could remain available for emergencies, closing costs, repairs, or investment. Compare:

the cash remaining after closing;
the payment with and without PMI;
the interest difference from a smaller loan;
the expected PMI duration; and
the value of flexibility.

Read Is a 20% Down Payment Really Necessary? and test affordability with the mortgage affordability calculator.

Important limits

The payment estimate excludes HOA dues, closing costs, special assessments, points, and changing escrow. It assumes a fixed-rate fully amortizing loan and no extra principal. Property tax and insurance are inputs, not local quotes. Mortgage approval, PMI pricing, and cancellation are lender- and loan-specific.

Frequently asked questions

Do all mortgages below 20% down require PMI?: No. PMI commonly applies to conventional loans, while FHA, VA, lender-paid, and other programs use different insurance or fee rules. Review the specific Loan Estimate.
When can a borrower request PMI cancellation?: For many covered mortgages, a borrower may request cancellation when scheduled principal reaches 80% of original value if applicable conditions are met. Automatic termination is generally tied to 78%, subject to current payments and other rules.
Does home appreciation remove PMI automatically?: Not necessarily. A servicer may require an appraisal, seasoning, payment history, or investor-specific standards before recognizing a higher value.
Is the PMI rate the same for every borrower?: No. Credit, LTV, loan type, occupancy, term, insurer, and other factors affect the premium. Use the actual quote when available.
Does the monthly result include closing costs or HOA dues?: No. It includes principal, interest, property tax, homeowners insurance, and modeled PMI. Closing cash and HOA dues must be considered separately.

Sources

People also calculate

Continue learning

Written by

ToolGrym Editorial Team

The ToolGrym editorial team builds and maintains every calculator on this site. Each tool’s formulas are implemented as tested code and verified against authoritative sources such as the CFPB, Federal Reserve, IRS, and BLS.