Monthly PMI

Monthly Private Mortgage Insurance payment required when down payment is below 20%.

Example Result

Sample Data

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Monthly PMI Formula

(PMI Rate × Loan Amount) ÷ 12

(0.00% × $308,000) ÷ 12

What This Means

A sample property priced at $385,000 with $2,850/month rent has a monthly pmi of $0. PMI adds to your monthly housing cost without building equity or providing you any benefit. It can cost $50–$300+ per month depending on your loan amount and PMI rate. Factor PMI into your cash flow analysis when evaluating deals with less than 20% down, and plan for when you can eliminate it.

Where This Value Comes From

Monthly PMI is not entered directly — it is calculated from PMI Rate and Loan Amount. See the formula breakdown above and the detailed inputs below.

Calculated From

Monthly PMI is calculated using these inputs:

PMI Rate

Annual Private Mortgage Insurance rate as a percentage of the loan amount.

Found on your lender disclosure

0.00%

Loan Amount

The total amount borrowed to finance the property purchase.

Found on your loan estimate

$308,000

Used to Calculate

Monthly PMI is used as an input for these calculations:

One Month of Reserves

Expense Metrics

$3,061

Total Monthly Payment

Debt Metrics

$2,049

Why It Matters

PMI adds to your monthly housing cost without building equity or providing you any benefit. It can cost $50–$300+ per month depending on your loan amount and PMI rate. Factor PMI into your cash flow analysis when evaluating deals with less than 20% down, and plan for when you can eliminate it.

Detailed Explanation

Private Mortgage Insurance (PMI) is required by conventional lenders when the down payment is less than 20% of the purchase price. It protects the lender (not you) in case of default. PMI is calculated as an annual percentage of the loan amount, divided by 12 for the monthly cost. PMI can typically be removed once you reach 20% equity through payments or appreciation.