What PMI is on a conventional loan

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.