PMI Explained: What a Smaller Down Payment Really Costs
See what PMI really costs in a 2026 home-buying scenario, when it can drop off, and how 10%, 15%, and 20% down payments change the plan.
Home Affordability Calculator
Learn more about this calculator
The mortgage payment is the part everyone calculates and the part that matters least. Property taxes, insurance, PMI, and maintenance often add 50-80% on top. Our calculator gives you the full PITI (principal, interest, taxes, insurance) + maintenance picture and projects equity growth over your expected hold period.
Enter price, down payment, rate, and ZIP-tier defaults for property tax and insurance. We surface the total monthly cost, the break-even hold period vs renting, and the equity you'll have at sale.
What this calculator covers
Use these as a quick scope check before you rely on the output.
- •Full PITI: principal, interest, taxes, insurance
- •PMI modeling with auto-removal at 20% equity
- •Annual maintenance estimate (% of value)
- •Equity-at-sale projection over hold period
- •Buy-vs-rent break-even calculation
- •Closing-cost estimation
Frequently asked questions
How does this differ from your Rent vs Buy calculator?
This focuses on the total cost of ownership and what you'll have at sale. Rent vs Buy compares both options head-to-head, including the opportunity cost of investing the down payment instead.
What maintenance percentage should I use?
The default is 1% of home value annually, which is a reasonable long-run average. Older homes, custom finishes, and certain regions can push it to 2%+.
Does this account for the mortgage interest deduction?
Most filers take the standard deduction post-TCJA, so we default to "no benefit." You can toggle on itemization to model the deduction.
What monthly payment is actually affordable?
Look past principal and interest. A sustainable payment includes taxes, insurance, PMI if it applies, HOA dues, utilities, maintenance, and the emergency savings you still need after closing. If the plan only works with every non-mortgage cost minimized, it is probably too tight.
Does this include closing costs and cash to close?
Yes — closing costs are part of the ownership picture, but you should still compare the calculator estimate with real Loan Estimates from lenders. Cash to close can include the down payment, lender fees, title costs, prepaid taxes and insurance, and reserves.
Related articles
Practical examples that connect the calculator to real planning decisions.
How Much Money Do You Actually Need to Buy a House?
Estimate cash to close, reserves, moving costs, and repairs with a $500,000 home-buying example for 2026.
The True Cost of Owning a Home (It's Not Just the Mortgage)
Estimate the all-in monthly cost of owning a home, including mortgage, taxes, insurance, maintenance, PMI, and unrecovered costs.
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