PMI Reality Check Calculator | Blue Jean Broker
Free Tool

PMI Reality Check Calculator

Find out what PMI actually costs you, and whether waiting to save 20% costs you even more.

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The Myth

"PMI is throwing money away." Most buyers hear this and wait years to save 20% down, not realizing they're often losing far more in appreciation than they'd ever pay in PMI. This calculator shows you the real numbers.

1
The Home
Enter the home you're looking at, or a realistic estimate.
Target purchase price
$
What you have saved today
$
Current estimate (check bankrate.com)
%
Typically 0.5% to 1.5% of loan per year
%
2
The Waiting Alternative
If you don't buy now, how long would it take to save 20%, and what happens to the market?
How much you can save per month toward a down payment
$
IL avg about 4%. National avg about 4 to 5%
%
The Verdict
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$0
Monthly PMI cost
$0
Total PMI until 20% equity
$0
Est. appreciation while paying PMI
$0
Home price if you wait
$0
Extra you'd need to save to reach 20%
$0
Equity built in year 1 if you buy now
Buy Now with PMI vs. Wait to Save 20%
Buy Now
Wait to Save
Home price you pay
Down payment needed
Total PMI paid
$0
Equity at PMI drop-off
Just starting
Net cost difference

Your Equity Timeline

Today 20% equity
PMI starts dropping off at 20% equity
Year —
You can request PMI removal (reaches 80% LTV)
Year —
PMI auto-cancels by law (Homeowners Protection Act)
Year —
The Real Frame

PMI isn't a trap, it's a convenience fee to lock in today's price. And unlike rent, every mortgage payment is building equity. PMI is temporary. Ownership is permanent.

Want to run your actual pre-approval numbers?

Let's look at your full picture: payment, PMI timeline, and what it takes to get to the closing table.

Schedule a Free Strategy Call →

Brian Wittman | Blue Jean Broker
Licensed Real Estate Agent through Real Broker LLC | Mortgage services through NEXA Mortgage, LLC, NMLS #1660690; Brian Wittman, NMLS #2646598; AZMB #0944059; Equal Housing Lender. For licensing information, visit nmlsconsumeraccess.org.
This calculator provides estimates for educational purposes only and is not a commitment to lend, financial advice, or a guarantee of rates or terms. Appreciation rates are not guaranteed. Results are based on the inputs you provide and general planning guidelines. Full disclosures at bluejeanbroker.com/disclosures.