Advanced | Simple | Early Payoff | Refinance | HELOC | Recast | Interest Only | Biweekly | Extra Payments | Free Widget |

**PMI removal calculator** to calculate the monthly PMI payment for your mortgage. The PMI payoff calculator will show you the cost of PMI and find out when your PMI will be paid off.

PMI is private mortgage insurance that borrowers are required to pay when their down payment is less than 20% of their home value for conventional mortgages. Conventional mortgages are those that are not sponsored by the government such as the USDA, VA, and FHA loans. Borrowers who put down less than 20% are viewed as riskier to the banks and therefore are required to pay additional mortgage insurance to protect the banks in case the borrower defaults. During financial difficulties, it's much easier for borrowers with less equity in the house to stop payments and walk away. To offset this additional risk and protect themselves, banks require the borrowers to pay for the PMI or when loan-to-value (LTV) is greater than 80% until the borrower's equity in the house exceeds 20%. Depending on the size of a mortgage, the monthly PMI could be quite expensive. The PMI rate is usually about 0.3 percent to about 1.5 percent of the original loan amount per year depending on the borrower's credit score and other factors. To avoid surprises when the monthly payment is due, borrowers who are planning to put down less than 20% should make proper calculations to include PMI into their budget along with taxes and insurance.

Banks and lenders will drop off PMI once the borrower's equity on the house exceeds 20%, which may take a few years. Borrowers should double-check with the bank to see if the PMI is removed after they build up enough equity in the house. There are a few ways that we will discuss below that will help to get rid of PMI altogether or payoff earlier.

To calculate the equity needed to remove PMI, multiply the original home price by 0.8. When the borrower's balance reaches that amount, the PMI will be removed.
For example, for a house with a price tag of 1 million, the borrower will stop paying for PMI when his balance is $800,000, since $1,000,000 * 0.8 = $800,000. At that time, the borrower would build up 20% of the equity in his house or $200,000.
To make the borrower's life easier, we built this PMI removal calculator that shows exactly when the PMI will be paid off.
Simply enter the home value, mortgage amount, and the yearly PMI rate, and the **PMI payoff calculator** will get an estimated monthly PMI payment.
The **PMI Cost Calculator** will calculate the payoff date for the private mortgage insurance, and the total amount of PMI that a borrower has paid over the years.
Private mortgage insurance is expensive and adds unnecessary costs for the borrowers, borrowers would want to get rid of it as soon as possible. Before we get into that, we need to first understand the concept of loan to value ratio, or the LTV.

The loan to value ratio or LTV is the ratio between the size of a loan when compared to the value of the home price. For example, if a house is worth $500,000, and the borrower puts 10% as a down payment, which is $50,000. That means the borrower is borrowing $450,000 from the bank, because $500,000 minus $50,000 is $450,000. To calculate LTV, divide $450,000 by $500,000 which equals 0.9 or 90% as a ratio. Since the LTV is 90%, that means the borrower would need to pay for PMI until LTV is 80% or less. The LTV is recalculated based on the principal owed on the loan as soon as the borrower starts making monthly payments. Since LTV is calculated based on the loan size and the value of the home price, there are two ways borrowers can lower their LTV, reduce the size of the loan, or increase the value of their home. To learn more on how to calculate LTV, check out the loan to value ratio calculator.

Following are a few ways on how to get rid of PMI.

**20% Down Payment**- The best way borrowers can avoid paying for PMI is to put at least 20% as a down payment on their house. A 20% down payment will make their LTV less than 80% and hence no need to pay for private mortgage insurance.**More Affordable House**- Borrowers who cannot make a 20% down payment on their house may consider finding a house that is more affordable. If the housing price is expensive in the area where they live, they can either find a smaller house, or a house in a different city or relocate to another state where housing is more affordable. Not only is housing more affordable in some states, but the overall cost of living is cheaper which allows borrowers to save even more money.**Extra Payments**- Another option the borrowers have is to make extra payments each month towards principal which will reduce the size of their loan and lower their LTV. Before starting making extra payments, a borrower should talk to his bank just to make sure there are no fees or penalties for extra payments.**Home Appreciation**- As the home value appreciates, borrowers can get an appraisal to reevaluate their house. If their home goes up in value, their LTV will be lower. However, make sure to talk to the bank first and hire an appraisal company that is approved by the lender.**Home Improvement**- Make incremental home improvements, such as installing solar panels, or redoing the kitchen or the bathroom. Every improvement that a borrower does to the house may increase the value of his home price and hence lowers his LTV.**Second Mortgage**- Another option that borrowers may consider is to get a second mortgage also known as a piggyback loan. Borrowers can get a first mortgage with a 20% down payment, therefore avoid paying for PMI. They can then obtain a second mortgage, usually with a higher interest rate, but is more affordable than paying for the PMI.

To learn more about getting a second mortgage, and how to calculate the cost of a second mortgage calculator, visit the second home mortgage calculator.

Check Today's Mortgage Rates

### Mortgage Calculators

FHA Loan Calculator

VA Loan Calculator

USDA Loan Mortgage Calculator

Simple Mortgage Calculator

PITI Mortgage Calculator

ARM Mortgage Calculator

Interest Only Mortgage Calculator

Balloon Mortgage Calculator

Mortgage Points Calculator

Second Mortgage Calculator

### Refinance Calculators

Mortgage Refinance Calculator

Cash Out Refinance Calculator

Refinance Break Even Calculator

Refinancing Closing Costs Calculator

Mortgage Recast Calculator

### Early Mortgage Payoff Calculators

Early Mortgage Payoff Calculator

Biweekly Mortgage Calculator with Extra Payments

Mortgage Calculator With Extra Payments

Mortgage Prepayment Calculator

Mortgage Payoff Calculator

### Real Estate Investment Calculators

Commercial Mortgage Calculator

Mortgage Comparison Calculator

15 Year vs. 30 Year Mortgage Calculator

Investment Property Calculator

Home Improvement Loan Calculator

Home Sale Net Proceeds Calculator

Closing Costs Calculator

Construction Loan Calculator

Home Appreciation Calculator

Real Estate Commission Calculator

Commercial Real Estate Commission Calculator

BRRRR Calculator

Hard Money Loan Calculator

70% Rule Calculator

Fix and Flip Calculator

Interest Rate Calculator

Home Sale Calculator

Real Estate Capital Gain Tax Calculator

### Mortgage Related Calculators

Mortgage Interest Tax Deduction Calculator

APR Calculator

Property Tax Calculator

Down Payment Calculator

Mortgage Affordability Calculator

Mortgage Balance Calculator

Mortgage Points Break Even Calculator

Jumbo Mortgage Calculator

Mortgage Calculator App

Monthly Mortgage Payment Calculator

Reverse Mortgage Calculator

How Much House Can I Afford

HELOC Calculator

HELOC Payment Calculator

PMI Removal Calculator

Home Equity Loan Calculator

Home Equity Loan Payoff Calculator

Mortgage Insurance Calculator

Amortization Schedule With Irregular Payments

15 Year Mortgage Calculator

30 Year Mortgage Calculator

Condo Mortgage Calculator

Coop Mortgage Calculator

Weekly Mortgage Calculator

Mortgage Calculator Canada

Mortgage Calculator UK

Mortgage Calculator By State

Refinance Savings Calculator

Mortgage Interest Calculator

### Auto Loan Calculators

Car Loan Amortization Schedule Excel

Auto Loan Payoff Calculator

Auto Loan Calculator with Trade in

Auto Refinance Calculator

Biweekly Auto Loan Calculator

RV Loan Calculator

Motorcycle Loan Calculator

Car Lease Calculator

Car Depreciation Calculator

LTV Calculator Auto

Reverse Auto Loan Calculator

How Much Car Can I Afford

### Loan Calculators

Printable Amortization Schedule

Amortization Schedule Excel

Amortization Schedule With Extra Payments

LTV Calculator

Debt To Income Ratio Calculator

Debt Payoff Calculator

How Much Rent Can I Afford

Boat Loan Calculator

Student Loan Calculator

Student Loan Payoff Calculator

Student Loan Refinancing Calculator

Personal Loan Calculator

Personal Loan Payoff Calculator

Personal Loan Refinance Calculator

Land Loan Calculator

Loan Payoff Calculator

Loan Calculator Excel

Reverse Loan Calculator

Lump Sum Payment Calculator

Biweekly Loan Calculator

Loan Calculator With Extra Payments

### Savings & Investments Calculators

Compound Interest Calculator

Airbnb Calculator

Money Market Account Calculator

### Credit Card Calculators

Credit Card Calculator

Credit Card Payoff Calculator

Credit Card Minimum Payment Calculator

Credit Card Interest Calculator

Multiple Credit Card Payoff Calculator

### Mortgage Guide

How to Pay Off Mortgage Earlier

How to Improve Credit Score

What Percent Do Real Estate Agents Make

### Mortgage Calculator Widget

Free Mortgage Calculator Widget

VA Loan Calculator

USDA Loan Mortgage Calculator

Simple Mortgage Calculator

PITI Mortgage Calculator

ARM Mortgage Calculator

Interest Only Mortgage Calculator

Balloon Mortgage Calculator

Mortgage Points Calculator

Second Mortgage Calculator

Cash Out Refinance Calculator

Refinance Break Even Calculator

Refinancing Closing Costs Calculator

Mortgage Recast Calculator

Biweekly Mortgage Calculator with Extra Payments

Mortgage Calculator With Extra Payments

Mortgage Prepayment Calculator

Mortgage Payoff Calculator

Mortgage Comparison Calculator

15 Year vs. 30 Year Mortgage Calculator

Investment Property Calculator

Home Improvement Loan Calculator

Home Sale Net Proceeds Calculator

Closing Costs Calculator

Construction Loan Calculator

Home Appreciation Calculator

Real Estate Commission Calculator

Commercial Real Estate Commission Calculator

BRRRR Calculator

Hard Money Loan Calculator

70% Rule Calculator

Fix and Flip Calculator

Interest Rate Calculator

Home Sale Calculator

Real Estate Capital Gain Tax Calculator

APR Calculator

Property Tax Calculator

Down Payment Calculator

Mortgage Affordability Calculator

Mortgage Balance Calculator

Mortgage Points Break Even Calculator

Jumbo Mortgage Calculator

Mortgage Calculator App

Monthly Mortgage Payment Calculator

Reverse Mortgage Calculator

How Much House Can I Afford

HELOC Calculator

HELOC Payment Calculator

PMI Removal Calculator

Home Equity Loan Calculator

Home Equity Loan Payoff Calculator

Mortgage Insurance Calculator

Amortization Schedule With Irregular Payments

15 Year Mortgage Calculator

30 Year Mortgage Calculator

Condo Mortgage Calculator

Coop Mortgage Calculator

Weekly Mortgage Calculator

Mortgage Calculator Canada

Mortgage Calculator UK

Mortgage Calculator By State

Refinance Savings Calculator

Mortgage Interest Calculator

Auto Loan Payoff Calculator

Auto Loan Calculator with Trade in

Auto Refinance Calculator

Biweekly Auto Loan Calculator

RV Loan Calculator

Motorcycle Loan Calculator

Car Lease Calculator

Car Depreciation Calculator

LTV Calculator Auto

Reverse Auto Loan Calculator

How Much Car Can I Afford

Amortization Schedule Excel

Amortization Schedule With Extra Payments

LTV Calculator

Debt To Income Ratio Calculator

Debt Payoff Calculator

How Much Rent Can I Afford

Boat Loan Calculator

Student Loan Calculator

Student Loan Payoff Calculator

Student Loan Refinancing Calculator

Personal Loan Calculator

Personal Loan Payoff Calculator

Personal Loan Refinance Calculator

Land Loan Calculator

Loan Payoff Calculator

Loan Calculator Excel

Reverse Loan Calculator

Lump Sum Payment Calculator

Biweekly Loan Calculator

Loan Calculator With Extra Payments

Airbnb Calculator

Money Market Account Calculator

Credit Card Payoff Calculator

Credit Card Minimum Payment Calculator

Credit Card Interest Calculator

Multiple Credit Card Payoff Calculator

How to Improve Credit Score

What Percent Do Real Estate Agents Make

Mortgage Calculator | Terms | Privacy | Disclaimer | Contact

©2023 **Mortgage Calculator Excel**