Question 1

What is PMI and who needs it?

Accepted Answer

Private Mortgage Insurance (PMI) protects the lender, not you, when you put less than 20% down on a conventional loan. It typically costs 0.3% to 1.5% of the original loan per year, added to your monthly payment. FHA, VA, and USDA loans use different mortgage-insurance structures.

Question 2

When does PMI automatically cancel?

Accepted Answer

By law (the Homeowners Protection Act), your lender must automatically cancel PMI when your loan balance reaches 78% of the original home value, provided you're current on payments. You can also request cancellation once you reach 80% LTV based on the current home value via a new appraisal.

Question 3

How does my credit score affect PMI?

Accepted Answer

Credit score is the single biggest factor after LTV. A 760+ score with 5% down might pay 0.3% PMI, while a 660 score with the same LTV could pay 1.0-1.5% — five times more. Improving your score before buying can save thousands over the life of PMI.

Question 4

Does this calculator store my information?

Accepted Answer

No. All calculations run entirely in your browser. No data is uploaded, saved, or shared with any server.