How does PMI cost vary by credit score?

PMI rates depend on your credit score and loan-to-value ratio (LTV). Borrowers with 760+ credit scores pay significantly less PMI than those with 620-639 scores. For example, at 95% LTV (5% down), a 760+ credit borrower might pay 0.35% annual PMI, while a 640 credit borrower might pay 2.06% annually.

What is the minimum down payment for a conventional loan?

Conventional loans allow down payments as low as 3% with PMI. While 20% down avoids PMI entirely, many borrowers choose 3-10% down to purchase sooner and build equity immediately.

When can I remove PMI from my conventional loan?

You can request PMI removal once you reach 20% equity through a combination of down payment and principal paydown. On a 30-year loan, reaching 20% equity through principal paydown alone takes roughly 12 years. On a 15-year loan, it takes about 7 years.

What is the difference between fixed and adjustable rate mortgages?

Fixed rates provide payment stability for the life of the loan. ARMs (adjustable rate mortgages) start with a lower introductory rate (typically 3/1, 5/1, 7/1, or 10/1 ARMs) that adjusts periodically after the fixed period.

What debt-to-income ratio is required for a conventional loan?

Conventional lenders typically want housing expenses (your mortgage payment) to be no more than 28% of gross monthly income and total debt (including your mortgage) to be no more than 43%. Some lenders will stretch to 50% for well-qualified borrowers with strong savings.

What credit score do I need for a conventional loan?

Conventional loans require minimum credit scores of 620, though lenders typically prefer 640 or higher for better rates and terms. Borrowers with 740+ scores qualify for the best PMI rates and interest pricing.

Side-by-Side Loan Comparison Calculator

Choosing the right mortgage is one of the most important financial decisions you'll make. This mortgage payment comparison calculator helps you evaluate loan options side-by-side. Compare conventional loans, FHA, USDA, and VA financing to see how your monthly payment, PMI, and total costs stack up. Learn more about conventional loans or explore all our mortgage calculators.

Check this box to copy all inputs from Scenario A to Scenario B

Loan Scenario A

Loan Type

Rate Type

Credit Score

Sales Price ($)

Down Payment

Points

Loan Amount ($)

Interest Rate (%)

Loan Term (Years)

Payment Type

Real Estate Taxes (Annual)

Homeowner's Insurance (Annual)

LTV

PMI/MIP Rate

Upfront Fee/MIP Cost

P&I Payment:

$0.00

Monthly Taxes:

$0.00

Monthly Insurance:

$0.00

Monthly PMI:

$0.00

Total Monthly:

$0.00

Total Cost

Down Payment:

$0.00

Points Cost:

$0.00

Total Cost:

$0.00

Loan Scenario B

Loan Type

Rate Type

Credit Score

Sales Price ($)

Down Payment

Points

Loan Amount ($)

Interest Rate (%)

Loan Term (Years)

Payment Type

Real Estate Taxes (Annual)

Homeowner's Insurance (Annual)

LTV

PMI/MIP Rate

Upfront Fee/MIP Cost

P&I Payment:

$0.00

Monthly Taxes:

$0.00

Monthly Insurance:

$0.00

Monthly PMI:

$0.00

Total Monthly:

$0.00

Total Cost

Down Payment:

$0.00

Points Cost:

$0.00

Total Cost:

$0.00

Compare: Difference: $0.00

PMI and Credit Score Impact

Private mortgage insurance (PMI) is a critical factor for borrowers with less than 20% down. The calculator above uses current PMI rate tables that adjust based on your credit score and loan-to-value ratio. For example, with a 5% down payment, a borrower with a 760+ score pays significantly less than one with a 620 score. Use this tool to see exactly how your credit tier affects your monthly PMI costs. For more details, visit our guide on Conventional Loan Credit Score Requirements.

This side-by-side calculator is the perfect tool to compare a Conventional 97 vs FHA loan or weigh the benefits of a VA loan vs Conventional loan.

Down Payment Strategies and Savings

Many buyers think they need 20% down to avoid PMI, but conventional loans allow as little as 3% down. Use our comparison tool to test different down payment levels (3%, 5%, 10%, 20%) and instantly see how your total monthly payment changes. This helps you decide if a smaller down payment is a smart move or if waiting to save more is the better financial choice.

PMI Removal and Equity Building

Once you reach 20% equity, you can request PMI removal. This calculator estimates your monthly payment and helps you understand how extra payments can speed up your equity timeline. Use the Payment Comparison Calculator alongside our Affordability Calculator to get a complete financial picture.

Interest Rates and Rate Type Comparison

Compare fixed-rate and adjustable-rate mortgages (ARMs) side-by-side. This calculator lets you test different interest rates in two scenarios, helping you see the long-term cost difference between a stable fixed rate and a lower introductory ARM rate.

Debt-to-Income Requirements

Conventional lenders prefer a DTI ratio below 43%. Use this tool to estimate your monthly housing payment and see if it fits your budget. For more detailed DTI planning, check our Debt-to-Income Calculator.

Making Your Decision

Choosing the right loan structure is easier with side-by-side data. Whether you are comparing conventional, FHA, USDA, or VA loans, this mortgage payment comparison calculator gives you the clarity you need to make a confident, data-driven decision. Explore all our mortgage calculators to further refine your home buying plan.