Mortgage calculator with PMI
This mortgage calculator with PMI shows the monthly cost of private mortgage insurance and the month it should end as your balance falls to 80% of the home’s value.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,035.04 | $23,346.20 | $356,964.96 |
| 2 | $4,305.29 | $23,075.95 | $352,659.67 |
| 3 | $4,593.62 | $22,787.62 | $348,066.05 |
| 4 | $4,901.26 | $22,479.98 | $343,164.79 |
| 5 | $5,229.50 | $22,151.74 | $337,935.29 |
| 6 | $5,579.73 | $21,801.51 | $332,355.56 |
| 7 | $5,953.42 | $21,427.82 | $326,402.14 |
| 8 | $6,352.12 | $21,029.12 | $320,050.02 |
| 9 | $6,777.53 | $20,603.71 | $313,272.49 |
| 10 | $7,231.46 | $20,149.78 | $306,041.03 |
| 11 | $7,715.76 | $19,665.48 | $298,325.27 |
| 12 | $8,232.49 | $19,148.75 | $290,092.78 |
| 13 | $8,783.82 | $18,597.42 | $281,308.96 |
| 14 | $9,372.11 | $18,009.13 | $271,936.85 |
| 15 | $9,999.77 | $17,381.47 | $261,937.08 |
| 16 | $10,669.47 | $16,711.77 | $251,267.61 |
| 17 | $11,384.03 | $15,997.21 | $239,883.58 |
| 18 | $12,146.43 | $15,234.81 | $227,737.15 |
| 19 | $12,959.89 | $14,421.35 | $214,777.26 |
| 20 | $13,827.85 | $13,553.39 | $200,949.41 |
| 21 | $14,753.92 | $12,627.32 | $186,195.49 |
| 22 | $15,742.01 | $11,639.23 | $170,453.48 |
| 23 | $16,796.29 | $10,584.95 | $153,657.19 |
| 24 | $17,921.16 | $9,460.08 | $135,736.03 |
| 25 | $19,121.37 | $8,259.87 | $116,614.66 |
| 26 | $20,401.99 | $6,979.25 | $96,212.67 |
| 27 | $21,768.33 | $5,612.91 | $74,444.34 |
| 28 | $23,226.21 | $4,155.03 | $51,218.13 |
| 29 | $24,781.71 | $2,599.53 | $26,436.42 |
| 30 | $26,436.42 | $939.86 | $0.00 |
How PMI works
Lenders require private mortgage insurance on conventional loans when the down payment is below 20%. Annual cost is commonly 0.3% to 1.5% of the loan, depending on credit score and down payment. Under the Homeowners Protection Act you can ask to cancel PMI once the balance reaches 80% of the original value, and it ends automatically at 78% if you are current.
Getting rid of PMI sooner
Extra principal payments reach 80% sooner. Some lenders also allow cancellation based on a new appraisal if the home’s value has risen, though they may require a seasoning period. Compare the cost of PMI with the higher rate some lenders charge in exchange for no PMI.
$361,000 loan: 15-year vs 30-year
On a $361,000 mortgage, a 30-year loan at 6.5% costs $2,281.77 a month in principal and interest and $460,432 in total interest. A 15-year loan at a rate about 0.6 points lower costs $3,026.85 a month, $745.08 more, but cuts the interest to $183,834, saving $276,598. The right choice depends on whether the higher payment fits your budget with room to spare.
| Loan | Principal & interest | Total interest | Total paid |
|---|---|---|---|
| 10-year at 5.9% | $3,989.74 | $117,768 | $478,768 |
| 15-year at 5.9% | $3,026.85 | $183,834 | $544,834 |
| 20-year at 5.9% | $2,565.53 | $254,729 | $615,729 |
| 30-year at 6.5% | $2,281.77 | $460,432 | $821,432 |
What each 6.5% ± 1 point does to the payment
A one-point change in your mortgage rate moves the payment on $361,000 by roughly $242.39 a month and the lifetime interest by about $87,271 over 30 years. That is why it pays to compare several lenders on the same day.
| Rate | Principal & interest | Total interest | Difference vs 6.5% |
|---|---|---|---|
| 5.5% | $2,049.72 | $376,897 | −$83,535 |
| 6% | $2,164.38 | $418,174 | −$42,258 |
| 6.5% | $2,281.77 | $460,432 | +$0 |
| 7% | $2,401.74 | $503,629 | +$43,196 |
| 7.5% | $2,524.16 | $547,704 | +$87,271 |
Down payment and PMI on a $380,000 home
With less than 20% down, lenders charge private mortgage insurance (PMI), commonly 0.3% to 1.5% of the loan per year. This page assumes 0.9%. PMI usually ends when you reach 80% of the home's original value, which you can reach sooner with extra payments.
| Down payment | Loan amount | PMI / month | Total monthly payment |
|---|---|---|---|
| 5% ($19,000) | $361,000 | $270.75 | $3,025.85 |
| 10% ($38,000) | $342,000 | $256.50 | $2,891.50 |
| 20% ($76,000) | $304,000 | $0.00 | $2,394.82 |
What income does a $380,000 home need?
Lenders often look at a front-end ratio of about 28% of gross income for housing costs. A total payment of $3,025.85 implies a gross income near $130,000 a year, and lenders also weigh your other debts, which usually must keep total payments under about 36% to 43% of income.
Year one is interest-heavy: $23,346 of interest against $4,035 of principal repaid, which is why extra payments early on have the most effect.
How fast you build equity
Equity here is the home price minus the loan balance, assuming the price stays flat. Appreciation, if any, would add to it.
| After | Loan balance | Principal repaid | Equity (flat value) |
|---|---|---|---|
| 5 years | $337,935 | $23,065 | $42,065 |
| 10 years | $306,041 | $54,959 | $73,959 |
| 15 years | $261,937 | $99,063 | $118,063 |
| 20 years | $200,949 | $160,051 | $179,051 |
Frequently asked questions
How much is PMI?
Typically 0.3% to 1.5% of the loan per year, higher for lower credit scores and smaller down payments.
When can I drop PMI?
You can request cancellation at 80% loan-to-value on the original value, and it should end automatically at 78% if you are current on payments.
What is the monthly payment on a $361,000 mortgage?
At 6.5% over 30 years, principal and interest on $361,000 is $2,281.77. With the estimated tax, insurance, HOA and PMI above, the total comes to about $3,025.85 a month.
What is included in a monthly mortgage payment?
Principal and interest are the loan itself. Many lenders also collect property tax and homeowners insurance in escrow, and charge PMI if your down payment is under 20%. HOA dues are paid separately.
Related calculators
Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.