![]() ![]() The total PMI premium is determined depending on the mortgage term and interest rate. These inputs are used to find out when you will reach an LTV of 80% so that your PMI can be removed. To find out the total PMI premium, the loan interest rate and loan term will be needed. You will have to pay approximately $137 each month for PMI. How much will your monthly PMI premium cost? ![]() Your lender notifies you that your mortgage insurance rate will be 0.55%. Since you can only afford to put a 15% down payment, you are required to pay for private mortgage insurance. You want to purchase a home that costs $350,000. A higher mortgage insurance rate means that you will pay a bigger amount on private mortgage insurance. Mortgage Insurance Rate – As mentioned above, the mortgage insurance rate is multiplied by the loan amount to find out the premium.Your private mortgage insurance premiums will be determined based on the amount you borrow. Down Payment Amount – The down payment you make is deducted from the home purchase price to find out how much financing you will need from the lender.For the same down payment, a higher home purchase price means that the loan amount will be bigger, and this exposes the lender to more risk, therefore the private mortgage insurance premiums will be higher as well. This is because the mortgage insurance rate is multiplied by the loan amount to find your annual mortgage insurance. Home Purchase Price - When all other variables stay fixed, the higher the home purchase price, the higher your private mortgage insurance will be.The following values are needed to calculate your monthly mortgage insurance premium: If your down payment is less than 20%, then you can estimate the cost of private mortgage insurance. First and foremost, if your down payment is 20% of the home purchase price or more, you will not need to pay for private mortgage insurance at all. To use the PMI calculator provided above, there are some property-specific values required to be inputted to complete the calculations. ![]()
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