Mortgage Insurance Calculator India — FY 2025-26

PMI (Private Mortgage Insurance) protects the lender, not you, if you default. It's required when your down payment is less than 20% (LTV above 80%). Despite benefiting only the lender, you pay the premium. It's effectively a fee for borrowing with less than 20% down.

Under the Homeowners Protection Act: PMI must be automatically cancelled when balance reaches 78% of original value, or you can request cancellation at 80%. You can also request cancellation early if your home has appreciated — get a new appraisal showing LTV is at or below 80% of current value.

The PMI deduction for US taxpayers has expired multiple times and been retroactively reinstated. Check current IRS rules — as of 2024, it's not deductible. In India, home loan protection insurance premiums can be included in the home loan interest deduction under Section 24.

HLPP is term insurance that pays off the home loan if the borrower dies. Banks often push this aggressively during loan disbursement. It's useful, but you should buy term life insurance independently (usually cheaper per rupee of coverage) rather than the bank-linked product, which may be overpriced.

Yes. PMI on a $300,000 loan at 0.7% = $175/month. Every $1,000 extra principal payment builds equity faster. Calculate the months you'll save and multiply by the monthly PMI — that's your return on the extra payment, effectively guaranteed and tax-free in most cases.