OnionPatchHow much does PMI cost with a low down payment?
PMI typically runs 0.3–1.5% of the loan amount per year, depending on credit score and down payment size. At 0.5% (the default here), a $250K loan adds about $104/month.
Home Affordability With a Low Down Payment
Calculate your home buying budget when putting less than 20% down. See exactly how PMI and a smaller down payment affect your monthly costs.
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Home Affordability With a Low Down Payment
Saving 20% for a down payment is not always realistic, especially in high-cost markets. This calculator shows what happens to your budget and monthly costs when you buy with a smaller down payment — including the PMI that kicks in.
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Get immediate results with prefilled settings for this scenario. Adjust any value to match your exact situation.
Why use this calculator
- See the exact PMI cost added to your monthly payment
- Compare your budget at different down payment levels
- Understand the trade-off between buying sooner and paying PMI
FAQ
When does PMI go away?
For conventional loans, you can request PMI removal once you reach 20% equity. It is automatically cancelled at 22% equity. This calculator assumes PMI applies for the full loan if down payment is under 20%.
Is it better to wait and save a bigger down payment?
It depends on your market. If home prices are rising faster than you can save, buying with PMI may cost less long-term than waiting. Use this calculator to compare both scenarios.
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Explore similar affordability scenarios with prefilled calculator settings.
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Disclaimer
This calculator provides estimates for informational purposes only. It is not financial advice. Actual affordability depends on credit score, lender requirements, local taxes, and other factors not modeled here. Consult a qualified mortgage professional before making purchasing decisions.