Mortgage Planning
PMI and LMI Explained
This guide covers what PMI and LMI are, why loan to value matters, how thresholds work, and how to enter rates and thresholds in the stress tester.
Published: January 1, 2026 · Updated: January 1, 2026 · By FinToolSuite Editorial
Open the stress tester
Enter PMI/LMI rates and thresholds, then compare scenarios at different LTVs.
Disclaimer
- Educational only. Rules vary by country and lender. No guarantees.
- Examples are illustrative.
PMI/LMI concept
PMI and LMI are insurance charges tied to higher LTV. They protect lenders and add a monthly cost for borrowers when LTV exceeds certain thresholds.
Threshold idea
Many markets link PMI/LMI to LTV thresholds. Lowering LTV below the entered threshold can reduce or remove the line item.
How to enter in the tool
- Enter the PMI/LMI percent.
- Enter the threshold LTV where it applies.
- Rerun the scenario after each change.
FAQs
Do I need exact local rules?
No. Use conservative estimates; this is educational and not jurisdiction-specific.
How do I see the effect?
Compare scenarios with different down payments and watch the PMI/LMI line and DTI change.
Where do I adjust LTV?
LTV changes when you change price or down payment; the tool recalculates automatically.
Where is privacy info?
See Privacy Policy.
Test PMI/LMI impacts
Open the mortgage affordability stress tester, enter PMI/LMI assumptions, and compare scenarios at different LTVs.