Conventional Loan Calculator
Monthly Payment, PMI & DTI Breakdown — 2026
Enter your home price and down payment — get a full conventional mortgage payment breakdown including PMI, the exact year PMI cancels, DTI analysis, and a side-by-side FHA comparison. Powered by live FRED rates and 2026 FHFA limits.
What the conventional calculator shows you
PMI cancellation is the defining advantage of conventional over FHA — and most calculators don't tell you when it happens. HomeRates.ai calculates the exact month PMI cancels using actual amortization, not a rule-of-thumb estimate.
Full monthly payment
Principal & interest, PMI (if applicable), property taxes, and homeowners insurance — every component broken out clearly.
PMI cancellation date
The exact year PMI cancels based on your actual amortization schedule. Shows total PMI paid and the monthly savings after removal.
DTI analysis
Front-end and back-end debt-to-income per Fannie Mae 45% guideline (50% with DU/LP). Shows where you stand and income needed to qualify.
Conventional vs FHA
Side-by-side on the same price. Which is cheaper monthly, which costs less upfront, and when PMI/MIP makes conventional the winner.
Live 2026 rates
Pulls the live 30-year average from FRED (Freddie Mac PMMS) weekly. Your payment uses the actual current market rate.
Loan limit check
Checks your loan against the 2026 FHFA conforming limit ($832,750 standard, up to $1,249,125 high-cost) and flags if you need jumbo financing.
Conventional payment — 20% down (no PMI) · 2026
Assumes 20% down · 6.75% rate · 30-year fixed · Taxes 1.1%/yr · Insurance 0.35%/yr.
| Home Price | Down (20%) | Loan | P&I | Tax + Ins | Total/mo | PMI |
|---|---|---|---|---|---|---|
| $300,000 | $60,000 | $240,000 | $1,557 | $362 | $1,919/mo | ✅ None |
| $350,000 | $70,000 | $280,000 | $1,816 | $423 | $2,239/mo | ✅ None |
| $400,000 | $80,000 | $320,000 | $2,076 | $483 | $2,559/mo | ✅ None |
| $450,000 | $90,000 | $360,000 | $2,335 | $544 | $2,879/mo | ✅ None |
| $500,000 | $100,000 | $400,000 | $2,594 | $604 | $3,199/mo | ✅ None |
| $600,000 | $120,000 | $480,000 | $3,113 | $725 | $3,838/mo | ✅ None |
| $700,000 | $140,000 | $560,000 | $3,632 | $846 | $4,478/mo | ✅ None |
For educational purposes only. Actual payment varies by county tax rate and insurance.
Conventional payment — 5% down (with PMI) · 2026
Assumes 5% down · 6.75% rate · 30-year fixed · PMI ~0.5%/yr · Taxes 1.1%/yr · Insurance 0.35%/yr. PMI cancels at 80% LTV — approximately year 10.6 at these inputs.
| Home Price | Down (5%) | Loan | P&I | PMI/mo | Tax + Ins | Total/mo |
|---|---|---|---|---|---|---|
| $300,000 | $15,000 | $285,000 | $1,849 | $119 | $362 | $2,330/mo |
| $350,000 | $17,500 | $332,500 | $2,157 | $139 | $423 | $2,719/mo |
| $400,000 | $20,000 | $380,000 | $2,465 | $158 | $483 | $3,106/mo |
| $450,000 | $22,500 | $427,500 | $2,773 | $178 | $544 | $3,495/mo |
| $500,000 | $25,000 | $475,000 | $3,081 | $198 | $604 | $3,883/mo |
| $600,000 | $30,000 | $570,000 | $3,697 | $238 | $725 | $4,660/mo |
| $700,000 | $35,000 | $665,000 | $4,313 | $277 | $846 | $5,436/mo |
PMI rate varies by credit score and lender. Estimate assumes ~0.5%/yr on loan balance. For educational purposes only.
Conventional vs FHA — side by side
$400,000 purchase · Conventional 5% down vs FHA 3.5% down · 6.75% rate · 30-year fixed.
| Feature | Conventional (5% down) | FHA (3.5% down) |
|---|---|---|
| Down payment | $20,000 | $14,000 |
| Upfront fee | None | $6,755 UFMIP (financed) |
| Total loan amount | $380,000 | $392,755 |
| P&I payment | $2,464/mo | $2,547/mo |
| Mortgage insurance | $158/mo (PMI) | $177/mo (MIP) |
| Insurance removes? | Auto at ~yr 10.6 (80% LTV) | Life of loan (under 10% down) |
| Min. credit score | 620 (740+ for best pricing) | 580 |
| Max DTI (standard) | 45% (50% with DU approval) | 43% (50% with factors) |
| Total monthly (PITI) | $3,089/mo | $3,208/mo |
| Better when | Credit 680+, 5%+ saved | Credit 580–679, under 5% saved |
How HomeRates.ai calculates your conventional payment
Deterministic — not AI-estimated. Same inputs always produce the same output.
- P&I on loan amount — computed on the loan balance at the current FRED 30-year rate. No upfront fees added — conventional has no UFMIP.
- PMI calculated — if down payment is under 20%, PMI is estimated at ~0.5%/yr of the loan balance. Actual PMI varies by credit score, LTV, and lender.
- PMI cancellation date — actual amortization run month-by-month to find the exact month the balance drops to 80% of purchase price. Not an estimate.
- DTI analysis — front-end and back-end ratios per Fannie Mae 45% back-end guideline (50% with DU/LP and compensating factors).
- 2026 loan limit check — loan amount compared against the 2026 FHFA conforming limit ($832,750 standard, up to $1,249,125 high-cost) per FHFA CY2026.
Frequently asked questions
What is a conventional loan calculator?
A conventional loan calculator computes monthly P&I, PMI (if under 20% down), taxes, and insurance on a Fannie Mae/Freddie Mac conforming loan. Unlike FHA, there's no upfront MIP — but PMI is required until 20% equity. HomeRates.ai uses 2026 FHFA limits and live FRED rate data.
What is the minimum down payment for a conventional loan in 2026?
3% for first-time buyers under HomeReady/Home Possible. 5% for standard conventional. 20% to avoid PMI entirely. Investment properties: 15–25%. The 2026 conforming limit is $832,750 standard county per FHFA.
When does PMI cancel on a conventional loan?
PMI cancels automatically at 78% LTV per the Homeowners Protection Act, or you can request removal at 80% LTV. At 5% down and 6.75%, that's around year 10.6. Unlike FHA MIP, conventional PMI never lasts the life of the loan.
What are the 2026 conventional loan limits?
$832,750 standard county, up to $1,249,125 in high-cost areas (most of California, NYC, Seattle, etc.). Above these limits requires jumbo financing. Source: FHFA CY2026, effective Jan 1, 2026.
Conventional vs FHA — which is better?
Conventional wins with 680+ credit and 5%+ down — PMI cancels at 80% LTV while FHA MIP lasts the life of the loan with under 10% down. FHA wins with 580–679 credit or DTI above 45%. The crossover is usually around 680 credit score with 5% down.
What credit score do I need for a conventional loan?
Minimum 620. Best pricing at 740+. Between 620–679 you pay a significant rate premium. Between 680–739 rates are good. At 740+ you qualify for the best conventional pricing and lowest PMI rates.
How accurate is the HomeRates.ai conventional calculator?
Deterministic calculation engine — same inputs, same output. Applies 2026 FHFA limits, Fannie Mae 45% DTI, live FRED rates, and calculates PMI cancellation using actual amortization. For educational purposes only — not a pre-approval.