PMI: drag the down payment
Drag the down payment. The home price is held still, so starting LTV moves only because the loan does. At 20 percent down, months of PMI is 0. Under that, the rider runs until amortised LTV hits 80 percent of original price.
Months of PMI
124
Monthly PMI
$190.00
Loan $380,000.00, starting LTV 95.0 percent. At 80 percent LTV the rider is already off. Illustrative arithmetic, not an underwriting quote or advice.
Home price
$400,000.00, held still so only the down payment moves.
In short
- Drag the bar right for a larger down payment and fewer months of PMI.
- Drag it left for a thinner down payment and a longer rider.
- Watch monthly PMI fall with the loan, then drop to zero at 80 percent LTV.
- Focus the handle and use the arrow keys to step the down payment.
80 percent is a switch
Conventional PMI in the United States is typically charged until amortised LTV hits 80 percent of original price. How PMI works is the rider. How loan-to-value works is the ratio. The PMI calculator returns both.
The monthly amount is not the rate
Folding the PMI rate into the loan rate for 30 years overstates the rider, because the rider stops. PMI against 20 percent down is that switch on one table.
LTV is not DTI
A small loan can be 95 percent LTV with an easy payment. LTV against DTI is the two ceilings. Private mortgage insurance protects the lender, not the borrower.
Common questions
Does PMI fall as I pay the loan down?
Not under the original-loan-percent form. The monthly amount stays flat until cancellation, then drops to zero.
Is 19 percent down almost 20 percent?
Not as a product. One of them has a monthly rider for years. The other does not.
Is this an underwriting quote?
No. It is original-price LTV on a teaching sheet. It is educational material, not advice.
Keep reading
This page is educational material, not financial advice. The figures come from the formula shown and assume the inputs you enter hold for the whole term. Your own rate, fees, taxes and timing will differ, so treat the output as arithmetic to check a decision against, not as a recommendation.