Understanding PMI

What the PMI field does

For a conventional loan, the PMI field is your annual rate. The monthly amount in the model is that rate applied to the original loan, divided by 12, while the calculator still treats insurance as required. It does not look up a lender’s price.

FHA, VA, and USDA use different labels and different stored assumptions. Those are not the same as the conventional PMI rate. Jumbo loans in this model do not add mortgage insurance unless you enter a jumbo mortgage-insurance rate.

When the schedule stops conventional PMI

The schedule models automatic termination at 78% of the original value. If you turn on borrower-requested cancellation, the model can stop the charge at 80% of original value, and only when occupancy is a primary residence and “assume the loan stays current” is on.

Those thresholds follow the shape of the Homeowners Protection Act for an eligible loan. They are not a determination that your loan is eligible, and they are not legal advice.

Needs review before launch. Cancellation rules depend on loan dates, occupancy, current status, and other conditions this page does not restate. Have this section reviewed before it is treated as a description of anyone’s rights.

What to read next to the number

The calculator prints a short note under the PMI field when conventional insurance is in use. That note is part of the estimate. If the status says PMI is not required, the monthly PMI line stays at zero even if a rate is typed in the field.

Nothing on this page asks a lender to cancel insurance, and the calculator does not send your inputs anywhere.

Try it in a calculator

Related guides

• How mortgage payments are calculated
• What affects monthly mortgage costs?
• How down payments affect mortgages

Read the methodology

Written to explain how this site’s calculators work. Not a review by a licensed mortgage professional, and not a recommendation to borrow. These notes are not financial, tax, or legal advice.