FAQ

PMI Calculator | Mortgage Insurance Calculator

example 1: calculate pmi cost with pmi rate

Assuming you want to buy a home for $100,000 and can afford a down payment of $12,000, you can calculate your PMI amount as follows:

Reading: How do you calculate pmi insurance

Step 1: Determine your loan-to-value ratio.

means you have 88% of the house amount left to pay.

Step 2: Multiply the mortgage loan amount by your specific pmi rate according to the lender’s table. You can look up the PMI rate or ask your lender directly. let’s assume your ltv of 88% corresponds to a pmi of 1.2%.

pmi = $88,000 * 1.2/100

pmi = $88,000 * 0.0120 = $1,056

You will owe an annual pmi of $1056.

Step 3: Divide the annual pmi by 12 to find the monthly pmi amount.

See also: Who Has the Cheapest Auto Insurance Quotes in Arizona? – ValuePenguin

monthly pmi = $1,056 / 12

monthly pmi = $88

example 2: how credit score, ltv and adjustments can affect the cost of pmi

Two friends, Clyde and Trent, each want to buy houses valued at $500,000 and $200,000, respectively. Clyde is buying the house as her second home and can make a down payment of 5% of the purchase price. while trent buys the house as an investment and can put down a 10% down payment.

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