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Mortgage Insurance Cost from an Entered Annual Rate

Estimate annual and monthly mortgage insurance from home price, down payment and a supplied annual premium rate.

  • Formula & worked example
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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

A home price of 300,000 with 10% down leaves a loan of 270,000. At an entered annual insurance rate of 0.5%, the estimate is 1,350 per year or 112.50 per month.

Loan = home price − down payment; annual premium = loan × annual rate; monthly premium = annual premium/12

Worked example

Enter these known values and leave the other values blank.

Home price
300000 USD
Down payment as percentage of home price
10 %
Entered annual insurance rate
.5 %
Down payment
30000 USD
Mortgage loan
270000 USD
Loan-to-price ratio
90 %
Estimated annual premium
1350 USD
Estimated monthly premium
112.5 USD

Assumptions and limitations

  • Home price is positive and down payment is between zero and the full price. The supplied annual premium rate is nonnegative and less than 100%.
  • This model uses a level annual charge on the entered loan amount, divided into twelve equal monthly amounts. It does not amortize the loan or model premium changes.
  • The tool does not decide whether PMI is required or automatically remove it at any down-payment threshold. Enter the actual quoted rate, including zero if appropriate.
  • The displayed ratio uses the purchase price as denominator. A lender may use a different applicable property value when determining loan-to-value.

Common questions

Does reaching 20% down automatically set the premium to zero?

No. This calculator always uses the rate you enter. Loan-specific insurance requirements and terms must come from the lender or insurer.

Is this a lender quote?

No. It is an arithmetic estimate using a supplied annual percentage. It excludes upfront premiums and any billing adjustments.

References

Bookify permits the full zero-to-100% down-payment range and always uses the explicitly entered insurance rate; it does not infer an insurance requirement.

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