Conventional Mortgage Calculator

What does a conventional loan calculator work out?

A conventional loan calculator estimates the full monthly payment on a mortgage not insured by FHA, VA or USDA: principal and interest, private mortgage insurance when the down payment is under 20%, and the escrowed property tax and insurance. It also checks the loan against the FHFA conforming limit and shows when PMI ends under the Homeowners Protection Act.

Most conventional loans are conforming: they follow Fannie Mae and Freddie Mac guidelines and stay within the FHFA loan limit, which is why the limit and the 3%-down programs (standard 97% LTV, HomeReady, Home Possible) matter. At the page defaults — a $450,000 home, 10% down, 6.75% for 30 years, 740 credit score, 1.2% tax and $1,500 insurance — the payment is $3,330.07: $2,626.82 principal and interest, $128.25 PMI, $450.00 tax and $125.00 insurance.

How much is PMI on a conventional loan, and when does it cancel?

Lenders require private mortgage insurance whenever the loan-to-value ratio is above 80%. Borrower-paid monthly PMI is a yearly percentage of the original loan, priced on credit score and LTV — roughly 0.2% to 2.25% across this calculator's reference table. On a $405,000 loan at 90% LTV with a 740 score it is 0.38%, or $128.25 a month.

The table is representative of published insurer rate cards, not a quote: at 97% LTV and the same score it reads 0.70%. Enter the rate on your Loan Estimate in Advanced for your own figure.

The Homeowners Protection Act of 1998 (12 U.S.C. §4902) fixes when it ends. You may request cancellation in writing on the date the balance is first scheduled to reach 80% of the original value — or earlier if extra payments actually bring it to 80% — with a good payment history. The servicer must terminate PMI automatically on the date the balance is first scheduled to reach 78% of the original value, based solely on the original amortization schedule, if you are current. If neither has happened by the midpoint of the term (month 180 of a 30-year loan), PMI ends there.

The distinction is the point most calculators miss: extra principal moves the 80% request date forward but never moves the automatic 78% date. On the default loan, $200 a month extra brings the request date from month 98 to month 68; the automatic date stays at month 112, so asking saves 44 months of PMI, $5,643.00. The calculator shows both dates and the saving.

What is the conforming loan limit for 2026?

The FHFA sets the conforming loan limit each November from its House Price Index. For 2026 the one-unit baseline is $832,750, up 3.26% from $806,500 in 2025, and the ceiling in designated high-cost counties is 150% of that, $1,249,125. Two-, three- and four-unit homes have higher limits.

A loan above the limit for its county is a jumbo loan: it cannot be sold to Fannie Mae or Freddie Mac, and lenders typically ask for larger down payments, more reserves and stronger credit. The page compares the loan amount — not the price — with the baseline, and lets you enter your county's limit in Advanced. A $950,000 home with 10% down is an $855,000 loan, $22,250 over the baseline, but conforming in a county whose limit is above $855,000.

How does 3 percent down compare with 5, 10 and 20 percent down?

A 20% down payment is not required. Fannie Mae and Freddie Mac buy fixed-rate loans up to 97% LTV on a one-unit principal residence (the standard 97% option, HomeReady and Home Possible), so 3% is the conventional minimum, 5% the common choice outside those programs, and 20% the point where PMI disappears.

On the default $450,000 home at 6.75% with a 740 score, 3% down ($13,500) gives a $3,660.75 payment with $254.62 of PMI ending at month 147; 5% ($22,500) gives $3,533.01 with $185.25 of PMI to month 139; 10% ($45,000) gives $3,330.07 with $128.25 to month 112; and 20% ($90,000) gives $2,909.95 with no PMI. The table beside the result runs these four at your own price, rate and credit tier.

Conventional vs FHA: which costs less over time?

FHA needs 3.5% down and accepts lower credit scores, but adds a 1.75% upfront premium and charges annual MIP — 0.55% on a typical 30-year loan with less than 5% down, 0.50% with more — for the whole term when the LTV is above 90%, or 11 years at 90% or below. Conventional PMI always ends.

Conventional PMI costs more per month at low credit scores and nothing at 20% down. The strip beside the result prices both loans at your price, rate and term, with the FHA figures from HUD Mortgagee Letter 2023-05 read from the same dataset as the FHA calculator.

At the defaults FHA comes to $3,416.54 a month against $3,330.07 conventional, and its MIP would run 11 years at 90% LTV. At 3% down on a $350,000 home at 7% with a 740 score the order flips at first — FHA $2,916.18 against conventional $2,931.74 — but FHA MIP then runs for 30 years while PMI ends at month 151. Below about 680 the PMI estimate climbs quickly and FHA usually wins on the monthly figure; the lifetime answer depends on how long you keep the loan.

What does this conventional loan calculator assume, and what does it leave out?

The loan is fixed-rate and fully amortizing with monthly payments; the payment is rounded to the cent and the final payment absorbs the residual. Taxes and insurance are annual figures divided by twelve and do not grow. PMI is level on the original loan amount and ends at the automatic 78% date.

Lender-paid and single-premium PMI, and the Fannie Mae and Freddie Mac rules that let a new appraisal end PMI early, are not modelled. The reference PMI table is an estimate — enter your quoted rate for your own figure.

Not modelled: adjustable rates, discount points and lender fees (the APR Calculator), the debt-to-income test (the Debt-to-Income Ratio Calculator), FHA loan limits by county, and underwriting. The result is an estimate for planning, not a loan offer, a pre-approval or a rate quote; your lender's Loan Estimate governs.