Tool 03
Payment, and the month PMI comes off
Conventional mortgage insurance is temporary, which is the single biggest reason it beats FHA at decent credit. This shows exactly when it ends.
Tool 03
Payment, and the month PMI comes off
Conventional mortgage insurance is temporary. You may request cancellation at 80% of the original value, and the servicer must drop it at 78%. Here is when, on scheduled payments alone.
Monthly payment, all in—
- Principal and interest—
- Property tax—
- Home insurance—
- HOA dues—
- Mortgage insurance—
Sample output. Escrow amounts are estimates and the real figures arrive on your loan estimate and closing disclosure.
Four structures
Mortgage insurance is not one product
Monthly, borrower-paid
The default. A monthly premium based on loan-to-value and credit score, cancellable at 80% of original value. Cheapest over a long hold, and the only one you can end early.
Single premium
One upfront payment, often financed or paid by a seller concession. No monthly premium at all. Wins when someone else is paying and loses if you refinance soon, because it is not refundable.
Split premium
A smaller upfront payment plus a reduced monthly. A middle option that occasionally prices best at high loan-to-value with a mid-range credit score.
Lender-paid
Built into a higher note rate. Nothing appears as mortgage insurance on your statement, and nothing ever cancels. Strong on a three-year horizon, expensive on a fifteen-year one.
All four are quoted on the same day's pricing before you choose, with a five-year total cost for each. Sample figures throughout this site.
Under the Homeowners Protection Act you may request cancellation once the balance reaches 80% of the original value, subject to a good payment history and sometimes a current appraisal. At 78% of original value the servicer must terminate it without you asking. The gap between those two dates is usually about two years of payments.
Often, yes. Most servicers will consider cancellation based on a current appraisal once you have held the loan for two years at 75% loan-to-value, or five years at 80%. You pay for the appraisal, so weigh the cost against the remaining premium.
Yes, and more than people expect. An extra $200 a month against a $382,500 loan at 6.375% moves the 80% date forward by roughly two years, because early payments are almost entirely interest and any extra principal skips that interest entirely.
Sometimes. Lender-paid MI is built into a slightly higher rate and never cancels, so it wins on short horizons and loses on long ones. We price monthly, single premium, split premium and lender-paid on the same day and compare five-year totals.
No. FHA has an upfront premium of 1.75% financed into the loan and an annual premium that runs for the full term above 90% loan-to-value. It does not cancel at 80%. The only exit is a refinance into a different programme.
Virginia property tax varies by locality and by assessment, and insurance depends on the roof, the claims history and the deductible you choose. This calculator uses a sample effective rate. Your loan estimate and closing disclosure carry the real figures.
Compare all four on your actual file
Credit score, down payment and how long you expect to keep the loan. Those three facts decide which mortgage insurance structure is cheapest for you.
Three wholesale quotes on the same day's pricing, before you choose.