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What PMI is on a conventional loan
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This guide
PMI is insurance the lender takes when the loan starts above 80% of the price. You type the monthly amount.
When this tool includes PMI
PMI is included when the amount borrowed is more than 80% of the home price you typed. Amount borrowed is price minus down payment. At 20% down or more, PMI is left out of the payment even if a number sits in the PMI field.
The monthly PMI dollar amount is yours to type. The calculator does not price a mortgage insurance policy.
It is not homeowners insurance
Homeowners insurance covers the house. PMI protects the lender if you stop paying while the loan is still large relative to the original price. They are separate lines in the payment mix.
This is the conventional 80/78 rule. FHA mortgage insurance is a different product and is not modeled here.
It drops out of the total later
While PMI applies, the housing total includes it. The screen also shows the total after PMI ends, so you can see the month you will have once that line is gone.
The end date uses the original price, not a future appraisal, and it assumes you make the scheduled payments.
This explains how WiseCalculator treats the numbers you type. It is not a lender’s offer and it is not advice for your loan.
More in Home
- When you can ask the lender to remove PMIYou can ask when the balance reaches 80% of the original price. The calculator dates that month from the schedule.
- When PMI ends on its ownAutomatic removal is at 78% of the original price, when payments are current. That month is separate from the day you can ask.
- What 20% down does to PMIA down payment of 20% or more keeps PMI out of the housing payment. The PMI field is ignored in that case.