Free Low Down Payment PMI Calculator (2026)
Compare low down payment options and their PMI impact
Why Low Down Payment Matters
Low down payment programs like FHA (3.5%), conventional 97 (3%), and VA (0%) make homeownership accessible but come with different mortgage insurance requirements and costs. Our calculator helps you compare the true long-term cost of these programs side by side, including upfront premiums, monthly insurance payments, and cancellation policies. Understand why FHA mortgage insurance is more expensive and harder to cancel than conventional PMI, and determine whether saving for a larger down payment or buying sooner with PMI is the better financial decision.
Best For
Buyers with limited savings for a down payment
Homebuyers comparing FHA vs. conventional loan programs
Real estate agents helping buyers choose the right loan program
Tips & Best Practices
Compare FHA mortgage insurance (MIP) against conventional PMI — FHA MIP cannot be canceled on loans with less than 10% down, while conventional PMI can be removed at 20% equity
A slightly higher down payment (5% vs. 3%) can meaningfully reduce your PMI rate and save thousands over the life of the policy
Ask about conventional loans with PMI vs. FHA loans — if your credit score is above 680, conventional PMI is typically cheaper and cancelable
Factor in the FHA upfront mortgage insurance premium (1.75% of the loan amount, financed into the loan) when comparing FHA to conventional options
Frequently Asked Questions
PMI applies to conventional loans with less than 20% down and can be canceled once you reach 20% equity. FHA mortgage insurance (MIP) applies to all FHA loans regardless of down payment, includes both an upfront premium (1.75% of loan amount) and monthly premiums, and lasts the life of the loan for borrowers who put less than 10% down. FHA MIP is generally more expensive over time.
This depends on your market, savings rate, and housing cost trajectory. In appreciating markets, buying sooner with PMI may cost less than the price increases you would face while saving. Calculate the total PMI cost over the expected payment period and compare it against projected appreciation and the opportunity cost of renting while saving. In many markets, buying sooner wins despite the PMI cost.
VA loans do not require PMI or any monthly mortgage insurance, even with 0% down payment. However, VA loans charge a one-time VA funding fee (typically 1.25-3.3% of the loan amount) which can be financed into the loan. This fee is waived for veterans with service-connected disabilities. The absence of monthly mortgage insurance makes VA loans one of the most cost-effective mortgage programs available.
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