Conventional Loan Report ·

Conventional Loan Calculator

See your full conventional payment with PMI included, when PMI ends, and where your DTI lands against Fannie Mae and Freddie Mac guidelines, using the same math a lender runs.

Home Loan Details

Home Purchase Price iThe purchase price of the home you are buying, before any down payment.

Fannie Mae and Freddie Mac cap how big a conforming loan can be, and the cap is set county by county. Pick your state to see its 2026 range, and look up your exact county at FHFA's site.

State iThe state where the home is located. It drives the conforming loan limit check below the loan readouts, and it estimates your state income tax in the leftover money view. Conforming limits are set county by county, so confirm yours at FHFA's lookup.

Down Payment iWhat you are putting down, as a percent of the price or a dollar amount.

Conventional minimums:
First-time buyers: 3% down
Most repeat buyers: 5% down

You do not need 20% down. 20% only means no PMI. Under 20%, PMI is added to the payment, and this calculator prices it for you.

Credit Score iConventional loans need a 620 minimum score, and unlike FHA, the price climbs step by step as scores drop: your rate and your PMI both get more expensive band by band. Your band here drives the PMI estimate.

Under 620, FHA is usually the play. It allows scores down to 500.

Interest Rate iYour quoted annual interest rate. No quote yet? Use a current market estimate for a realistic payment. Check daily rates to get a good average. See current market rates.

Loan Term iThe loan length in years. Most buyers use 30 years. Shorter terms mean a higher payment, less total interest, and faster equity, which also ends PMI sooner.

yrs

See current market rates

These are national daily averages from Optimal Blue, not a quote. Your actual rate depends on your credit, down payment, loan type and any points you pay. The date is shown at the bottom of the panel. Nothing here changes the rate you typed into the calculator.

Source: Optimal Blue Mortgage Market Indices (OBMMI). Open the market rates in a new tab.

Loan Amount iPurchase price minus your down payment. Conventional loans have no upfront mortgage insurance fee to roll in, so unlike FHA, what you borrow is exactly what you owe on day 1.

$380,000

Loan-to-Value iYour loan divided by the home's price. LTV decides whether you pay PMI at all (above 80%) and how much. Along with your credit score, it is the biggest lever on your PMI rate: crossing under 95%, 90%, or 85% each steps the rate down.

95.0%

Principal & Interest

$2,339.73/mo

Monthly Housing Costs

Property Taxes iEnter property taxes as a percent of the purchase price per year, or tap $/mo to enter the exact monthly amount from a tax bill or listing. Most areas fall between 1% and 2% per year.

= $500/mo

Homeowner's Insurance iEnter homeowner's insurance as a percent of the purchase price per year, or tap $/mo to enter a real quote. A common estimate is about 0.5% per year.

= $167/mo

HOA Dues iHomeowners association dues, if the property has an HOA. Some HOAs bill quarterly or annually, so tap /yr to enter the annual total instead. Leave it at 0 if there is none.

Other (flood insurance, etc.) iAny other monthly housing cost, such as flood insurance or a special assessment. Leave it at 0 if none apply.

Monthly PMI iPrivate mortgage insurance, required under 20% down. Estimated from typical borrower-paid monthly PMI pricing for your credit band and LTV. Your exact quote depends on the insurer and your full file, and lenders shop several insurers, so treat this as a realistic middle.

$167.83/mo

Annual PMI Rate

0.53%

PMI Ends iPMI is temporary by law. It cancels automatically when your balance is scheduled to reach 78% of the original value, and you can request cancellation at 80%. This readout shows the automatic date on your amortization schedule. With appreciation and 2 years of payments, many owners cancel years sooner through a value review with their servicer.

About 11 yrs

Income iAdd every income source you receive. All of it counts toward your DTI. Employment income, military base pay, retirement, second jobs, and self-employment are taxable and drive the estimated income taxes. BAH, BAS, VA disability, Social Security, and child support are non-taxable. Conventional guidelines let a lender gross up non-taxable income by 25% in the DTI calculation, and this calculator applies the same boost. Rental income is counted at 75%, the same haircut a lender applies.

Total Monthly Income

$11,000

Est. Income Taxes iEstimated the way a lender runs a quick paycheck check: 2026 federal brackets and standard deduction, Social Security and Medicare, plus an approximate state income tax for your state, calculated on a monthly basis with zero adjustments. Non-taxable income is excluded. Local taxes are not included.

Conventional loans qualify you on gross income, so taxes never change your DTI. They are here so you can see what is actually left over each month.

$2,543/mo

Effective Tax Rate

23.1%

Monthly Liabilities iThe minimum monthly payments that show on your credit report: car loans, credit cards, student loans, and similar. Use the minimum due, not what you actually pay. Do not include utilities, insurance, or the home you are buying.

Total Monthly Debts

$500/mo

1Your monthly payment

$3,175

2Front-end (housing) ratio iYour full house payment, including PMI, divided by your gross monthly income. The classic conventional rule of thumb is 28%, but Fannie Mae and Freddie Mac set no hard cap on it. Automated underwriting looks at the total DTI in step 3, so treat 28% as a comfort marker, not a wall.

28.9%

Over 28%

28%

3Back-end (total DTI) ratio iYour house payment plus all monthly debts, divided by your gross monthly income. 36% is the classic conventional guideline, and with an Approve/Eligible from automated underwriting, conventional loans close up to 50% DTI. Non-taxable income is grossed up 25% in this math, the same boost conventional guidelines allow a lender.

33.4%

36% or under

36%

50% max

Fits conventional guidelines

Where your income goes iYour gross monthly income, split the way your budget actually feels it. What's left after estimated income taxes, the full house payment including PMI, and your monthly debts is the money your family lives on. Underwriting doesn't check this number, but you should.

Calculate Closing Costs

Understand Your Numbers

More Info

What is PMI?

PMI is insurance that protects the lender when you put less than 20% down. It's the trade that lets you buy with 3% or 5% down instead of saving for years. Your credit score and down payment set the price, and there's no upfront fee like FHA has.

PMI doesn't last forever

It drops off on its own when your balance reaches 78% of the original value, and you can ask to have it removed at 80%. If your home goes up in value, you may be able to drop it a few years sooner.

The 28/36 rule, and how far it bends

The old rule says 28% of your income for the house and 36% once you add your debts. Only the second number really matters. With an automated approval, conventional loans close with total DTI up to 50%.

Passing here isn't an approval

A lender looks at your whole file: income, assets, debts, credit, and payment history. Your credit score sets both your rate and your PMI, so keep it clean while you shop.

Ready for real numbers?

You ran the numbers. Now get them verified.

A preapproval turns this estimate into an exact rate, an exact PMI quote, and a budget you can shop with. It costs nothing, and it does not lock you into anything.

Book a Free Consultation Visit Payne Home Loans

This calculator is an educational estimate, not a loan approval, a preapproval, or financial advice. It models typical borrower-paid PMI pricing and conventional DTI guidelines, but PMI quotes vary by insurer and full credit profile, a lender verifies your complete file: income, assets, liabilities, credit, and payment history, and may apply its own overlays. Taxes and insurance figures are estimates that vary by property and location, and conforming loan limits vary by county. Confirm your numbers with a licensed loan officer before making decisions.

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