California PMI Calculator

Calculate private mortgage insurance costs for California homes with detailed payment estimates.
Determine PMI rates, monthly payments, and cancellation timeline. Compare with our California mortgage calculator, advanced mortgage calculator, or explore general loan options.
Last updated: June 2025 Manually verified by: Sarah L. from ManyCalcs team Data source: PMI providers, California Association of Realtors
Why use a PMI Calculator?
PMI adds to your monthly mortgage payment. Understanding these costs helps you budget accurately and plan for PMI removal.

PMI Results

Enter your details to see PMI costs and timeline here.
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Understanding PMI in California

What is PMI?

Private Mortgage Insurance (PMI) is required when you purchase a home with less than 20% down payment on a conventional loan. It protects the lender if you default on your mortgage.

Key Features:

  • Required: When down payment is less than 20%
  • Cost: Typically 0.3% to 1.5% of loan amount annually
  • Payment: Added to monthly mortgage payment
  • Cancellation: Removable when loan-to-value reaches 80%
  • Benefit: Allows homeownership with smaller down payment

PMI Rate Factors

PMI rates vary based on several risk factors that lenders use to assess the likelihood of default:

Rate Influences:

  • Credit Score: Higher scores get lower rates
  • Down Payment: Larger down payments reduce rates
  • Loan-to-Value Ratio: Lower LTV means lower rates
  • Loan Type: Fixed vs. adjustable rate mortgages
  • Property Type: Single-family vs. condo vs. investment
  • Coverage Amount: Usually 20-35% of loan amount

PMI Cost Breakdown by Credit Score

Credit Score Range Typical PMI Rate Monthly Cost* Annual Cost* Risk Level
760+ 0.30% - 0.60% $180 - $360 $2,160 - $4,320 Excellent
740-759 0.35% - 0.70% $210 - $420 $2,520 - $5,040 Very Good
700-739 0.40% - 0.85% $240 - $510 $2,880 - $6,120 Good
660-699 0.55% - 1.05% $330 - $630 $3,960 - $7,560 Fair
620-659 0.75% - 1.25% $450 - $750 $5,400 - $9,000 Poor
580-619 1.00% - 1.50% $600 - $900 $7,200 - $10,800 Very Poor
*Estimated monthly and annual costs based on $720,000 loan amount (90% LTV). Actual rates vary by lender and specific loan terms.

Investment calculator to see how PMI affects your overall home investment returns

PMI Cancellation Guide

Automatic Cancellation

Federal Requirements:

  • 78% LTV: PMI automatically terminates
  • Midpoint: Cancels at loan's midpoint if current on payments
  • Good Standing: Must be current on mortgage payments
  • No Modifications: No subordinate liens on property
Timeline Example: On a 30-year loan, automatic cancellation typically occurs around year 11-13, depending on appreciation and payments.

Request Cancellation

Borrower-Initiated:

  • 80% LTV: Request removal when LTV reaches 80%
  • Appraisal: May require new appraisal (cost: $400-800)
  • Payment History: Must be current on payments
  • Written Request: Submit formal cancellation request
Pro Tip: Track your home's value appreciation and principal payments to request cancellation as soon as you qualify.

Alternatives to PMI

Piggyback Loan (80-10-10)

Structure: 80% first mortgage, 10% second mortgage, 10% down payment

Pros:
  • No PMI required
  • Interest may be tax deductible
  • Faster equity building
Cons:
  • Higher interest on second loan
  • Two mortgage payments
  • More complex qualification

Lender-Paid PMI (LPMI)

Structure: Lender pays PMI premium in exchange for higher interest rate

Pros:
  • No separate PMI payment
  • May lower monthly payment initially
  • Interest is tax deductible
Cons:
  • Higher interest rate permanently
  • Can't cancel like traditional PMI
  • May cost more long-term

VA/USDA Loans

Structure: Government-backed loans with no PMI requirement

VA Loans:
  • No PMI or down payment required
  • For eligible veterans/service members
  • Funding fee instead of PMI
USDA Loans:
  • No down payment required
  • For rural/suburban areas
  • Guarantee fee instead of PMI

Frequently Asked Questions

PMI is calculated as a percentage of your loan amount, typically ranging from 0.3% to 1.5% annually. The rate depends on your credit score, loan-to-value ratio, and down payment amount. For example, on a $600,000 loan with a 0.5% PMI rate, you'd pay $3,000 annually or $250 monthly.

PMI deductibility depends on federal tax laws, which have changed over time. As of 2025, PMI may be deductible for qualified borrowers with adjusted gross income under certain thresholds. California generally follows federal tax treatment. Consult a tax professional for current rules and your specific situation.

Yes, several alternatives exist: 1) Piggyback loans (80-10-10 structure), 2) Lender-paid PMI (higher interest rate), 3) VA loans (for eligible veterans), 4) USDA loans (for qualifying rural areas), or 5) Some first-time buyer programs. Each option has different costs and qualification requirements.

PMI duration depends on your loan-to-value ratio and payment history. You can request cancellation when LTV reaches 80%, and it automatically terminates at 78% LTV. With a 10% down payment, this typically takes 8-11 years, depending on home appreciation and extra principal payments. Making additional principal payments can shorten this timeline significantly.

PMI (Private Mortgage Insurance) is for conventional loans, while MIP (Mortgage Insurance Premium) is for FHA loans. PMI can be cancelled when you reach 80% LTV, but FHA MIP often lasts for the life of the loan. PMI rates vary by lender and credit score, while MIP rates are set by FHA. PMI typically offers more flexibility for well-qualified borrowers.