Mortgage Insurance Comparison Calculator

Compare conventional PMI, FHA MIP, VA funding fee, and USDA guarantee fee side by side. See monthly costs, cancellation rules, total lifetime cost, and whether refinancing from FHA to conventional saves money for your specific loan.

$
%
%
yrs
Loan Amount
$332,500
$350,000 home, 5.0% down, 95.0% LTV — Mortgage insurance required
Conventional PMI
$188/mo
Auto-cancels at 78% LTV (year ~12), request at 80% LTV (year ~11)
FHA MIP
$236/mo
$5,819 upfront + $236/mo
VA Funding Fee
$5,486 once
One-time only
USDA Guarantee Fee
$97/mo
$3,325 upfront + $97/mo
Monthly Mortgage Insurance by Program
Conventional PMI
Monthly: $188 (0.68%% annual)
Auto-cancels at 78% LTV (year ~12), request at 80% LTV (year ~11)
30yr: $26,190
10yr: $22,610
FHA MIP
Upfront: $5,819 (1.75%%) | Monthly: $236 (0.85%% annual)
Cannot cancel — must refinance to conventional to remove
30yr: $90,606
10yr: $34,081
VA Funding Fee
Upfront: $5,486 (1.65%%) | No monthly fee
One-time only — no ongoing monthly mortgage insurance ever
30yr: $5,486
10yr: $5,486
USDA Guarantee Fee
Upfront: $3,325 (1.00%%) | Monthly: $97 (0.35%% annual)
Annual guarantee fee for the full life of the loan
30yr: $38,238
10yr: $14,963
At 95.0% LTV and 720+ credit score, conventional PMI is $188/mo vs FHA MIP at $236/mo. Conventional PMI is cheaper and cancellable — FHA may not be the better choice despite easier qualification.

Complete comparison of all mortgage insurance types on a $332,500 loan with 5.0% down at 720 credit score.

ProgramUpfrontMonthly5yr Total10yr TotalFull TermCancellable?
Conventional PMI$0$188$11,305$22,610$26,190Yes — 12 years
FHA MIP$5,819$236$19,950$34,081$90,606No — refinance only
VA Funding Fee$5,486$0$5,486$5,486$5,486N/A (one-time)
USDA Guarantee Fee$3,325$97$9,144$14,963$38,238No — refinance only
yrs

Total mortgage insurance cost over 10 years, accounting for PMI cancellation at year 12 and FHA rules.

Conventional PMI
$22,610
Over 10 years
FHA MIP
$34,081
Over 10 years
Never cancels — full cost
VA Funding Fee
$5,486
Over 10 years
USDA Guarantee Fee
$14,963
Over 10 years
Never cancels — full cost
Conventional PMI cancellation at year 12 saves $0 vs keeping PMI for the full 10-year hold period. This cancellation savings is the key advantage over FHA MIP.

How to Use This Mortgage Insurance Comparison Calculator

This calculator gives you a complete picture of mortgage insurance across all four major loan program types — not just PMI. Enter your loan details once and instantly compare every insurance option with monthly costs, cancellation timelines, and total lifetime cost.

Quick Comparison

Enter your Loan Amount, Down Payment, Interest Rate, and Credit Score. The calculator shows monthly insurance costs for conventional PMI, FHA MIP, VA funding fee, and USDA guarantee fee, along with when each cancels (or if it ever does). A key alert tells you whether conventional PMI or FHA MIP is cheaper at your credit score.

Advanced: Side-by-Side, Cancellation Rules, Credit Impact

The Side-by-Side tab provides a full comparison table including 5-year, 10-year, and full-term costs. The Cancellation Rules tab explains exactly when each type of insurance stops — including the critical difference between conventional PMI (auto-cancels at 78% LTV) and FHA MIP (permanent with less than 10% down). The Credit Score Impact tab shows the PMI rate at each credit tier and the exact credit score where FHA becomes cheaper than conventional.

Pro: Lifetime Cost, Refinance Analysis, Lender-Paid MI

The Total Lifetime Cost tab calculates total MI cost for your actual hold period, accounting for PMI cancellation savings. The Refinance to Remove tab computes the break-even for refinancing from FHA to conventional to eliminate permanent MIP. The Lender-Paid MI tab models whether a higher rate with no monthly PMI beats standard PMI based on your hold period.

Mortgage Insurance Cost Formula

Conventional PMI Monthly = Loan Amount × PMI Rate% / 100 / 12
PMI Rate varies by credit score: 760+ = 0.30-0.70%; 720-759 = 0.45-0.90%; 680-719 = 0.65-1.25%; below 680 = 1.00-2.00%

FHA Upfront MIP = Loan Amount × 1.75%
FHA Annual MIP Monthly = Loan Amount × 0.85% / 12

VA Funding Fee = Loan Amount × 2.15% (first use, 0% down)
VA Funding Fee = Loan Amount × 1.65% (first use, 5-9.99% down)
VA Funding Fee = Loan Amount × 1.25% (first use, 10%+ down)

USDA Upfront = Loan Amount × 1.00%
USDA Annual Monthly = Loan Balance × 0.35% / 12

Total MI Cost = Upfront Fee + (Monthly MI × Number of Months Until Cancellation)

The PMI rate table is set by private mortgage insurance companies and varies by LTV (loan-to-value ratio) and credit score. A borrower with a 760+ credit score at 90% LTV pays about 0.38% annually, while a 640 credit score at the same LTV pays about 1.20% — more than three times the cost for the same loan.

Example: Maria Compares FHA vs Conventional Mortgage Insurance

Scenario: $320,000 home, 5% down ($16,000), 700 credit score

Loan Amount$304,000
LTV95%
Credit Score700
Conventional PMI Rate (700 credit, 95% LTV)~0.90%/yr = $228/mo
Conventional PMI Total Until 80% LTV (est. yr 9)~$24,600
FHA Upfront MIP$5,320 (1.75% of $304,000)
FHA Annual MIP Monthly$215/mo (0.85%)
FHA MIP — Never Cancels (<10% down)$5,320 + $215 × 360 = $82,720 total
Better ChoiceConventional — PMI cancels at year 9, total $24,600 vs $82,720 FHA

Even though Maria's monthly FHA MIP ($215) is slightly lower than conventional PMI ($228), the permanent nature of FHA MIP costs her $58,000 more over 30 years because conventional PMI cancels when she reaches 80% LTV around year 9.

Frequently Asked Questions

Yes — VA loans have no monthly mortgage insurance (only a one-time funding fee that can be financed). NACA loans have no PMI or fees. Physician/doctor loans from select lenders offer zero PMI with 0-10% down. Some credit unions and portfolio lenders offer special programs with no PMI below 20% down. Lender-paid MI (LPMI) eliminates the separate PMI charge but embeds the cost in a higher rate. Piggyback loans (80-10-10 structure) use a second mortgage to avoid PMI on the first, though this adds complexity and often costs more.
Technically no — the VA funding fee is not mortgage insurance in the traditional sense. It is a one-time fee paid to the Department of Veterans Affairs that funds the VA loan guarantee program. Unlike PMI or FHA MIP, there is no ongoing monthly charge. For comparison purposes in this calculator, it functions as the VA's equivalent "insurance" cost. The funding fee is financed into the loan in most cases, slightly increasing your loan balance and monthly payment.
FHA makes sense when: (1) Your credit score is below 620 — FHA accepts scores as low as 500 with 10% down, while most conventional lenders require 620+. (2) You had a recent bankruptcy or foreclosure — FHA waiting periods are shorter (2 years for bankruptcy vs 4 for conventional). (3) Your DTI is high — FHA allows up to 43-50% DTI while conventional is typically 45% maximum. (4) You plan to sell or refinance within 5-7 years before you would cancel PMI anyway. (5) You need a streamline refinance option later — FHA Streamline has easier requirements.
Yes — FHA does offer a partial refund of the upfront MIP if you refinance using another FHA loan (FHA-to-FHA refinance). The refund is a percentage of the original upfront MIP based on how many months have passed since your original loan closed. The refund schedule starts at about 80% at month 2 and decreases each month — by month 36, there is no refund. If you refinance from FHA to conventional (not FHA-to-FHA), there is no upfront MIP refund.
Not entirely — with 10% or more down, FHA MIP still applies for 11 years (132 months). The 1.75% upfront MIP is still required, and the annual MIP continues for 11 years. Only after 11 years does FHA MIP cancel. With 10%+ down, the annual MIP rate is slightly lower (0.50% vs 0.85% for loans over 15 years). Conventional loans with 20% down require no PMI at all. This is why 20% down is the conventional threshold that eliminates insurance completely.

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