Mortgage Insurance Lab — PMI, FHA MIP, VA & USDA Calculators

Monthly PMI equals your loan amount times the annual PMI rate, divided by 12. The annual rate is set by the mortgage insurer based mainly on two things: your credit score and your loan-to-value ratio (LTV). Higher scores and lower LTVs get lower rates. This lab estimates annual PMI rates from 0.19% to 1.30% using a simplified table modeled on published insurer rate cards — for example, a $400,000 home with 10% down and a 720 credit score estimates at 0.52%, or about $156 per month on the $360,000 loan. So, how is PMI percentage calculated in practice? Rate tier (from your score band and LTV band) times loan amount, divided by 12 — enter your numbers in the PMI rate estimator above for your own estimate.

A PMI calculator with credit score maps your FICO band (for example 720–739) and your LTV band (for example 85.01–90%) to the rate tier a private mortgage insurer would charge. Someone with a 760+ score at 90% LTV might estimate around 0.25%, while a 660–679 score at the same LTV estimates near 0.97% — roughly four times more. Most basic calculators just ask you to type a PMI rate manually; this lab estimates the rate for you from those two inputs, then shows the monthly and annual cost.

Take your loan amount (home price minus down payment), multiply by the annual PMI rate, and divide by 12. Example: a $400,000 home with 10% down means a $360,000 loan. At an estimated 0.52% annual PMI rate, that is $360,000 × 0.0052 ÷ 12 = $156 per month. Use the PMI rate estimator tab to get the rate from your credit score and down payment, then the removal tab to see how many months you will pay it.

Under the U.S. Homeowners Protection Act, you can request PMI cancellation once your balance reaches 80% of the home’s original value (with a good payment history and no subordinate liens), and your servicer must automatically terminate PMI when the balance is scheduled to reach 78% of the original value. For example, a $360,000 loan at 7% on a $400,000 home reaches 80% LTV around month 101 and 78% LTV around month 115 on the original schedule. The PMI removal tab computes both dates for your loan, with or without extra payments.

Yes for borrower-requested cancellation: extra principal gets your balance to 80% of the original value sooner, so you can ask your servicer to drop PMI earlier — paying $200 extra per month on a $360,000 loan at 7% moves the 80% date from about month 101 to about month 67. But automatic termination at 78% is based on your original amortization schedule, so it does not speed up with extra payments; the earlier request route is the one that benefits. Try it in the removal tab with the extra-payment field.

Often, if you stay in the home long enough. Single-premium PMI — sometimes called a PMI buyout — costs roughly 2.75 times one year of monthly PMI, paid once at closing — for a 720 score at 90% LTV that is about 1.43% of the loan ($5,148 on $360,000) versus $156/month. Monthly PMI until the 80% removal date would total about $15,756 in that example, so the upfront option saves roughly $10,600 if you stay past the removal date. The breakeven is the single premium divided by the monthly PMI. Use the comparison tab to run your own numbers with your holding horizon.

With borrower-paid PMI (BPMI), you pay a separate monthly premium that cancels at 80–78% LTV. With lender-paid PMI (LPMI), the lender pays the premium and charges you a higher interest rate instead — typically 0.25% to 0.50% higher. The lender paid PMI vs borrower paid PMI tradeoff is simple: LPMI is cheaper per month but the rate bump is permanent, while BPMI costs more monthly but disappears at 80% LTV. On a $360,000 loan at 7%, a 0.30% LPMI bump adds about $73/month to principal and interest, versus $156/month of BPMI — cheaper monthly, but the higher rate lasts for the life of the loan unless you refinance, while BPMI drops off. The comparison tab models both over your holding horizon.

A piggyback loan avoids PMI by splitting the purchase into two loans: 80% first mortgage, 10% second mortgage, 10% down payment (80-10-10). The second lien carries a higher rate — for example, a $320,000 first loan at 7% plus a $40,000 second at 9% costs about $2,451/month combined, versus about $2,551/month for a single $360,000 loan at 7% plus $156 PMI — a saving of roughly $100/month. The tradeoff: two closings, a higher second-lien rate, and less flexibility. Model it in the comparison tab.

FHA mortgage insurance premium (MIP) has two parts: an upfront MIP of 1.75% of the base loan amount (usually financed into the loan), plus an annual MIP charged monthly. For 30-year loans the annual rate is 0.55% when LTV is above 95% and 0.50% otherwise; for 15-year terms it is 0.40% above 95% LTV and 0.25% otherwise. Example: a $400,000 home with 3.5% down gives a $386,000 base loan, $6,755 upfront MIP, a $392,755 total loan, and about $180/month in annual MIP at the 0.55% tier.

The FHA upfront mortgage insurance premium is 1.75% of your base loan amount, charged at closing. On a $400,000 base loan that is exactly $7,000. Most borrowers finance it — it gets added to the loan balance (so a $386,000 base loan becomes $392,755) — but you can also pay it in cash at closing to keep the loan smaller. Unlike the annual MIP, the upfront premium is never refunded or cancelled.

It depends on how long you keep the loan — this is the classic money question. Conventional PMI cancels once you reach 80–78% LTV, while FHA annual MIP lasts 11 years if your original LTV was 90% or less, or the entire life of the loan if it was above 90%. Example over 11 years: conventional with 5% down and a 720 score costs about $29,640 in PMI before it drops off, while FHA with 3.5% down costs about $6,755 upfront plus $180/month — roughly $30,517 total, about $877 more. The comparator tab runs both side by side for your numbers and horizon.

The VA funding fee is a one-time fee on VA home loans, usually financed into the loan. For regular military first-time use with 0% down it is 2.15% (so $8,600 on a $400,000 loan); subsequent use with 0% down is 3.30%. Putting 5% or more down lowers it (1.50% first use / 1.65% subsequent), and 10%+ down lowers it further (1.25%). Reserve and National Guard rates are slightly higher on first use. Veterans with a service-connected disability are exempt. Use the VA & USDA tab for the full table.

USDA loans (for eligible rural homes, 0% down) charge a 1.00% upfront guarantee fee — $4,000 on a $400,000 loan, typically financed so the loan becomes $404,000 — plus an annual fee of 0.35% of the loan balance, charged monthly (about $118/month on that example). Unlike PMI, the USDA annual fee does not cancel at 80% LTV; it lasts for the life of the loan. Eligibility also depends on income limits (115% of area median) and the property being in a USDA-eligible rural area.

It is an estimate, not a quote. Real PMI rates are set by your lender’s mortgage insurer and vary by insurer, loan program, property type, and occupancy — no online calculator can reproduce your exact rate. This lab uses a simplified rate table (0.19%–1.30%) modeled on the structure of published private-mortgage-insurer rate cards, adjusted for loan term. Use it to compare scenarios and strategies (removal timing, upfront vs monthly, FHA vs conventional); get your binding quote from your lender.

No. PMI (private mortgage insurance) protects your lender if you default — it does not protect you or your belongings. Homeowners insurance protects you against damage to the property. Both are often collected monthly through your escrow account along with property taxes, which is why they get confused. This lab covers mortgage insurance costs (PMI, FHA MIP, VA funding fee, USDA fees); it does not estimate homeowners insurance premiums.

Your data is private: this tool runs 100% in your browser — nothing you type is sent to any server, and there is no signup or tracking. It is educational only, not financial advice: mortgage insurance rules, rates, and tax treatment change and vary by lender and jurisdiction. The examples use U.S. loan programs (PMI, FHA, VA, USDA); Canada’s CMHC insurance and Australia’s LMI are analogous products with different rules and are not modeled here. Always confirm figures with your lender or a licensed professional before making decisions.