Down Payment & PMI Calculator

Calculate down payment amounts and Private Mortgage Insurance (PMI) costs. Compare different down payment scenarios and see when PMI is automatically removed.

Home Purchase Details

Purchase Information

$
$ 20%
%

PMI Information

%

Typically 0.3% - 1.5% annually

% LTV

78% LTV is standard for automatic removal

Quick Summary

Enter home price and down payment to see analysis

Understanding Down Payments & PMI

Down Payment Basics

  • 20% = No PMI: Putting down 20% or more eliminates the need for PMI
  • Lower rates: Higher down payments often qualify for better interest rates
  • Instant equity: Your down payment becomes immediate home equity
  • Lower payments: Larger down payment means smaller loan and lower monthly payments

PMI Explained

  • Protects lender: PMI protects the lender if you default on the loan
  • Required <20%: Mandatory when down payment is less than 20%
  • Auto removal: Automatically cancelled when you reach 78% LTV
  • Request removal: Can request removal at 80% LTV with appraisal

💡 Optimization Strategies

Minimize PMI Impact:

  • • Save for 20% down payment to avoid PMI entirely
  • • Consider 80-10-10 loan (piggyback loan) structure
  • • Make extra principal payments to reach 78% LTV faster
  • • Request PMI removal when home value increases

Down Payment Sources:

  • • Personal savings and investments
  • • Gifts from family members (with proper documentation)
  • • Down payment assistance programs
  • • 401(k) loans or IRA withdrawals (first-time buyers)