The conventional mortgage calculator estimates your total monthly payment by combining principal, interest, private mortgage insurance if applicable, property taxes, and homeowners insurance. It adjusts PMI based on your down payment percentage and credit score tier. This provides a complete picture of your housing cost under conventional financing terms.

Your credit score significantly impacts both your interest rate and PMI cost on a conventional loan. Borrowers with 760+ scores may receive rates 0.5-1.5% lower than those with 620 scores, and their PMI rates are also substantially lower. On a $350,000 loan, this combined difference can mean $300-$500 more per month for lower-credit borrowers.

Private mortgage insurance on a conventional loan can be removed once you reach 20% equity, either through payments or home appreciation. The calculator shows your PMI cost based on your initial loan-to-value ratio. You can model different down payment amounts to see exactly when PMI would no longer apply and how it affects your long-term costs.

Putting 20% down eliminates PMI, but it is not always the best financial decision. The calculator can help you compare scenarios: a smaller down payment with PMI versus a larger down payment without it. Sometimes keeping cash reserves or investing the difference yields a better return than the PMI savings, especially if PMI cancellation is only a few years away.

The calculator allows you to compare conventional and FHA payments side by side. For borrowers with credit scores above 720 and at least 10% down, conventional loans often have lower total monthly payments because PMI rates are lower than FHA MIP and can be cancelled. For lower credit scores or smaller down payments, FHA may be more affordable initially.