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How is PMI calculated?

Answer:

Base-To-Loan %
Fixed Rate Loan

Loan Buydowns

Arm 2% + 1 Year Cap

30 yrs.15 yrs.

30 yrs.

15 yrs.

30 yrs.

15 yrs.

95.01% to 97%

.90.79

n/a

90.01% to 95%

.78.26

.88

.77

.92

.81

85.01% to 90%

.52.23

.61

.50

.65

.54

85% and Under

.32.19

.33

.22

.37

.26
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- A PMI Calculation Example -

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</center><center>

After putting 5% down, you need to borrow
$100,000, and want a "Fixed Rate", 30 year loan.
What is the monthly cost for PMI?

</center><center>
</center><center>

(The Solution)

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</center><center>

To calculate the monthly "Private Mortgage Insurance" fee ....

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</center>

Look in the "Base-To-Loan %" column, and locate
the percentage of the amount you need to borrow.

(In this example, it is 95%)

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</center>

Next, locate the column at the top describing the
type of loan you wish to get. In this case it will be a
"Fixed Rate Loan". Then choose the 30 yrs. column,
and locate where "a" and "b" converge to see ".78"

c.
Multiply $100,000 (your loan amount ) by .78%

d.
Divide $780 by 12 (months) = $65 per month PMI

<center>$65 is your Monthly PMI Premium!</center>

First answer by ID2725489784. Last edit by ID2725489784. Question popularity: 1 [recommend question].

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