Zillow Mortgage Calculator Without Pmi

This Zillow mortgage calculator helps you estimate your monthly payment without Private Mortgage Insurance (PMI). PMI is typically required for conventional loans when you put down less than 20% of the home's value. By using this calculator, you can compare mortgage costs with and without PMI to make an informed decision.

How to use this calculator

To get an accurate mortgage estimate without PMI:

Enter the home price you're considering
Input your down payment amount (must be 20% or more of home price)
Select your loan term (15, 20, or 30 years)
Enter your estimated interest rate
Click "Calculate" to see your monthly payment

The calculator will show you your estimated monthly payment, total interest paid over the life of the loan, and a breakdown of your payment components.

What is PMI?

Private Mortgage Insurance (PMI) is a type of insurance that protects the lender if you default on your mortgage. It's typically required for conventional loans when you put down less than 20% of the home's value.

PMI is usually temporary, typically paid until you reach 20% equity in your home or when you refinance to a loan without PMI.

How PMI affects your mortgage

PMI adds to your monthly mortgage payment and increases the total cost of your loan. Here's how it works:

PMI is usually about 0.5% to 1.5% of your loan amount, paid monthly
It's typically required for conventional loans with less than 20% down
PMI is usually temporary, paid until you reach 20% equity or refinance

For example, on a $300,000 loan with 10% down, you might pay $150-$300/month in PMI, increasing your total monthly payment by 5-10%.

When is PMI required?

PMI is typically required for conventional loans when:

Your down payment is less than 20% of the home's value
You're using a conventional loan (not an FHA or VA loan)
Your loan-to-value ratio (LTV) is above 80%

PMI is usually required when LTV > 80% and down payment < 20%

How to calculate mortgage without PMI

The standard mortgage payment formula without PMI is:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]

Where:

M = monthly payment
P = principal loan amount
i = monthly interest rate (annual rate / 12)
n = number of payments (loan term in years × 12)

For a $300,000 home with 20% down, 30-year term, and 5% interest rate:

Principal = $300,000 - $60,000 (20% down) = $240,000
Monthly rate = 5% / 12 = 0.4167%
Number of payments = 30 × 12 = 360
Monthly payment = $240,000 [ 0.004167(1.004167)^360 ] / [ (1.004167)^360 - 1 ] ≈ $1,275.60

FAQ

What is the difference between PMI and mortgage insurance?

PMI (Private Mortgage Insurance) is a type of mortgage insurance that protects the lender if you default on your loan. It's typically required for conventional loans with less than 20% down. Mortgage insurance is a broader term that can include PMI, as well as other types of insurance that protect lenders or borrowers.

Can I get a mortgage with less than 20% down?

Yes, but you'll typically need to pay PMI (Private Mortgage Insurance) until you reach 20% equity in your home. Some lenders offer PMI-free loans with 20% down or more, or through programs like FHA or VA loans.

How much does PMI cost?

PMI typically costs about 0.5% to 1.5% of your loan amount, paid monthly. The exact cost depends on your loan type, down payment, and credit score. PMI is usually temporary, paid until you reach 20% equity or refinance to a loan without PMI.

Is PMI worth it?

PMI can be worth it if you're buying a home with less than 20% down, as it protects the lender and allows you to qualify for a mortgage you might not otherwise be able to get. However, it increases your monthly payment and total loan cost, so it's important to weigh the pros and cons before deciding.

How do I get rid of PMI?

You can typically get rid of PMI by:

Making extra principal payments to reach 20% equity
Refinancing to a loan with 20% down or more
Switching to an FHA or VA loan (which don't require PMI)