Free US PMI Calculator: Auto-Cancellation Date & FHA MIP

PMI cost per month = (Loan Balance × Annual PMI Rate) ÷ 12. The rate comes from your selected credit-score tier and is auto-filled into the rate field. You can override it with any lender quote.

The Homeowners Protection Act of 1998 lets you request PMI cancellation when your balance drops to 80% of the original purchase price via regular amortization. The calculator simulates month-by-month balance reduction to pinpoint that exact month.

By law, lenders must automatically cancel PMI when the balance reaches 78% of the original price — no request needed. The calculator identifies this date separately in the timeline so you see both your request right and the automatic fallback.

When home values rise, LTV falls faster than amortization alone. The calculator tracks month-by-month home value growth at your annual appreciation rate alongside amortization. It reports the earliest date your balance ÷ projected value dips below 80%.

PMI premiums are underwritten to credit risk. The five tiers (620–639, 640–659, 660–699, 700–739, 740+) reflect industry-standard rate bands. Selecting a tier auto-fills the annual PMI rate field with a realistic benchmark value.

The dynamic rate matrix cross-references five credit tiers against four down-payment buckets (3–5%, 5–10%, 10–15%, 15–20%). Your current scenario cell is highlighted in blue so you can instantly see how a higher score or larger down payment would reduce your PMI.

Models a standard conforming loan with separate monthly PMI. PMI ends when amortization brings the balance to 80% of the original purchase price. After that, you retain the original interest rate for the remainder of the term.

Models an FHA loan with both an upfront MIP of 1.75% (added to the loan balance) and an ongoing annual MIP of 0.55%. For down payments below 10%, FHA MIP lasts the full loan term. For 10%+ down it lasts 11 years.

LPMI eliminates the monthly PMI line item by permanently increasing the interest rate. The rate bump is set by you (default 0.75%). The model calculates after-tax total cost since the LPMI rate bump generates deductible mortgage interest.

The calculator sums every dollar paid over the full loan term for all three options and flags the lowest-cost scenario with a green “Winner” banner. The comparison table shows monthly payment, insurance cost, insurance term, and total loan cost.

LPMI’s higher rate generates more deductible mortgage interest. The calculator applies your marginal tax rate to the extra interest paid over the loan term, reducing LPMI’s effective cost for itemizing borrowers.

The comparison assumes you keep each loan to its stated term. It does not model appreciation-based FHA refinancing, prepayment, changing rates, or LPMI removal via refi. Use the Appreciation tab and Refinance Calculator for those scenarios.

A piggyback loan is two mortgages closing simultaneously. The 1st covers 80% of the price, keeping LTV below 80% so no PMI is required. The 2nd (10–15% of price) covers part of the down payment. You fund the rest in cash.

80-10-10: 10% 2nd loan, 10% cash down. 80-15-5: 15% 2nd loan, 5% cash down. 80-5-15: 5% 2nd loan, 15% cash down. Each structure changes your 2nd loan size, monthly total, and long-term cost, all modeled separately.

The comparison totals all payments for both options over their respective terms. The 2nd mortgage typically carries a higher rate (home equity or HELOC rate) so the calculator shows whether that premium is offset by the PMI you avoid.

Piggyback wins when the 2nd mortgage rate spread over your primary rate is smaller than the PMI you would otherwise pay. On a 0.62% PMI rate with a 1.75% rate bump on the 2nd, piggyback typically wins at higher loan balances.

Each month two things reduce your LTV: (1) amortization reduces the numerator (loan balance), and (2) appreciation increases the denominator (home value). The calculator runs both engines simultaneously month by month.

You can add extra monthly principal payments to see how aggressively paying down the balance combines with appreciation to reach 80% LTV faster. The model shows the year-by-year impact of both actions working together.

The hero card at the top of results shows the exact calendar year when LTV first drops below 80%. The appreciation model uses new-value LTV (balance ÷ current market value), which is different from HPA’s original-price LTV. Lenders require an appraisal to use the new value.

The model calculates total PMI savings by comparing PMI paid over the full remaining term (if you never acted) against PMI paid only until the appreciation-based removal year. That difference is your appreciation dividend.

When a buyer puts down less than 20% of the purchase price, the lender finances more than 80% of the home’s value. If the borrower defaults and the lender must sell the home, prices do not always cover a high-LTV loan balance plus foreclosure costs. PMI covers that gap — it is the lender’s insurance policy, paid for by the borrower.

You pay the PMI premium each month as part of your total mortgage payment. If you default, the PMI insurer compensates the lender — not you. You receive no direct benefit from PMI beyond being able to buy a home with less than 20% down. This asymmetry is why eliminating PMI as quickly as possible is almost always in your financial interest.

For conventional loans, PMI ends under the Homeowners Protection Act (HPA 1998): you can request cancellation when your balance hits 80% of the original purchase price, and lenders must automatically cancel it at 78%. You can also remove it earlier if home appreciation brings your current-value LTV below 80%, subject to lender appraisal requirements.

PMI premiums typically range from 0.2% to 2.1% of the loan amount per year. On a $400,000 loan that is $67 to $700 per month. The exact rate depends on your credit score, down payment percentage, loan term, and which PMI insurer your lender uses. This calculator uses a five-tier credit-score matrix that reflects real industry pricing bands.

The Homeowners Protection Act of 1998 (Public Law 105-216) is the federal law that governs PMI on conventional residential mortgages. It created the 80% request right, the 78% automatic termination, and the midpoint rule. Lenders who fail to comply face penalties under HPA. FHA loans are governed by separate HUD rules and do not fall under HPA.

Most borrowers accept PMI without modeling the total cost, comparing alternatives, or planning their removal strategy. This calculator quantifies the exact dollar cost of every option — PMI, FHA MIP, LPMI, and piggyback loans — and shows you the fastest legal path to cancellation so you can make a decision with real numbers instead of guesses.

Conventional PMI wins when your credit score is 700+ (lower PMI rate tier) and you plan to stay long enough for PMI to cancel via amortization or appreciation. It is the most transparent structure — you see exactly what PMI costs and exactly when it ends.

FHA wins when your credit score is 620–660 because FHA’s 0.55% MIP rate does not penalize lower scores the way conventional PMI does. If you plan to refinance into conventional once you build equity, FHA’s lower ongoing MIP often produces a lower total cost over a 5–7 year window.

LPMI wins when you plan to sell or refinance within 5–7 years and the rate bump is small (0.5% or less). You never pay a monthly PMI line item and the higher interest is partially offset by its deductibility. Beyond year 7, the permanent rate premium usually exceeds the PMI you would have paid and cancelled.

Piggyback wins when the interest rate on the 2nd mortgage is low enough that paying it is cheaper than the PMI it replaces. On a $500,000 purchase with 10% down and a 0.74% PMI rate, a 2nd mortgage at 8.50% or less typically costs less over the combined loan terms. Higher 2nd mortgage rates flip the advantage to PMI.

Enter price, down payment, rate, and term. Select your credit score tier — the PMI rate auto-fills. Set your appreciation rate, then calculate. Read the cancellation timeline to find the earliest removal date. Compare the HPA request date (80%) vs auto-cancel (78%) to see how much you save by acting proactively.

Enter the same home price and down payment, then add both your conventional and FHA quoted rates. Set the LPMI rate bump to your lender’s offer. Enter your marginal tax rate. Calculate and look at the “Winner” card — it identifies the lowest true 30-year cost across all three options.

Enter your home price and cash down. Select the structure that matches your cash available (80-10-10, 80-15-5, or 80-5-15). Enter your 1st and 2nd mortgage quoted rates. Enter the PMI rate for comparison. Calculate and check whether piggyback or single-loan-with-PMI produces the lower total.

Enter your current home value, outstanding balance, rate, remaining term, appreciation rate, and monthly PMI amount. Optionally add extra monthly principal payments. Calculate to see a year-by-year table of home value, balance, LTV, and the exact year where LTV first drops below 80% — your target for a new appraisal and PMI removal request.