PMI Calculator
Enter home price, loan amount, PMI annual rate, mortgage rate, and term to compute the loan-to-value (LTV), monthly principal and interest, monthly mortgage insurance, and first-month total payment.
Input Data
Results
At a glance:PMI protects the lender on high-LTV loans; this calculator estimates the LTV, the monthly mortgage payment with insurance, and the balance at which insurance can be cancelled.
Formula
ltvPct = loanAmount / homePrice × 100%
monthlyPrincipalInterest = loanAmount × r·(1+r)^n / ((1+r)^n − 1) (r = annualRate%/12, n = years×12)
monthlyPmi = loanAmount × pmiAnnualRatePct% / 12
totalMonthly = monthlyPrincipalInterest + monthlyPmi
$$\text{LTV} = \dfrac{L}{P}\times 100\%$$$$M = \dfrac{L\cdot i}{1-(1+i)^{-n}},\quad i=\dfrac{r}{12},\ n=\text{years}\times 12$$How to Use
- Enter the home price and loan amount.
- Enter the PMI annual rate, mortgage rate, and term.
- Review the LTV, monthly payment, and cancellation balance.
FAQ
Does Hong Kong have mortgage insurance like the US PMI?
Yes. Hong Kong's Mortgage Insurance Programme, run by the Hong Kong Mortgage Corporation (HKMC), lets qualifying buyers take mortgages up to 90% (or higher for some self-use homes), with a mechanism like US PMI — both insure high-LTV (above 80%) mortgages. The difference: US PMI is often paid monthly, while Hong Kong's is usually a one-off premium (which can be added to the loan).
How is the mortgage insurance premium calculated?
The premium depends on the LTV and the loan term — the higher the LTV and the longer the term, the higher the premium rate. This calculator estimates the monthly cost using 'annual rate ÷ 12' so you can compare monthly burdens at different rates; the actual premium follows the HKMC or bank quote.
At what LTV is insurance required?
Generally the threshold is 80%: an LTV of 80% or below (i.e. a down payment of 20% or more) usually needs no mortgage insurance; only high-LTV mortgages above 80% require it. Use this calculator to check the LTV first, then decide whether to scrape together a 20% down payment to avoid the premium.
Is it worth paying the premium for a high-LTV mortgage?
It depends. If property prices keep rising and the cost of delaying entry exceeds the premium, a high-LTV mortgage may be worthwhile; but if prices are flat or falling, the extra premium and interest become a real burden. Consider also the down-payment and rent-vs-buy calculators for a fuller picture.
How can I stop paying mortgage insurance earlier?
The key is to bring the LTV back below 80% as soon as possible. Methods include: making extra partial repayments to cut the principal balance, choosing a shorter term to amortise faster, or revaluing after the property appreciates (lowering the LTV). This calculator's 'PMI cancellation balance' is the reference line of 80% of the home price.
This calculator's content is reviewed by our Licensed Financial Planning team. Results are for reference only; please refer to the relevant authorities for the official figures.