How do you calculate private mortgage insurance for a home loan?

Question : How do you calculate private mortgage insurance for a home loan?
I am looking to buy a home and because I am putting less than 20% down I was told I have to pay private mortgage insurance, I am wondering what is the calculation in order to determine what my monthly payment of pmi will be for a loan of $ 115, 000.
home mortgage insurance

Best answer:

Answer by DeeDee
In australia, you can borrow up to 80% of the amount without Mortgage insurance, and 90% if you can easily make the payments

the remaining amount is what you would use to calculate (in aust)
may be a few thousand dollars on top of your loan

you can actually go onto the bank’s website and they should have the loan calculators which you can use and see repayments, interest etc

goodluck

This entry was posted by admin on September 9, 2010 at 5:45 am, and is filed under Loans and Mortgages. Follow any responses to this post through RSS 2.0.You can leave a response or trackback from your own site.

Comments (5)
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#1 written by mortgage help 1 year ago

it is tiered depending on how much you put down. the more you put down the less you are charged. the tiers are broken into 5% increments: 0 down, 5%, 10%, and 15%.
You can also have your loan broken into a 1st and 2nd so you won’t have any PMI. Get both scenarios from a Loan Officer to discuss. Keep in mind, PMI is now deductible.

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#2 written by loanman46 1 year ago

It vary’s but as an average we see PMI costing $ 2 – $ 2.50 per $ 1000 of coverage. I would guess around $ 50 on your loan.

There are many loan programs available with PMI built into the rate. I also suggest considering a possible second mortgage in lieu of a higher rate first or PMI.

Here is some additional info. Hope this helps.

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#3 written by ScottMortgageExpert 1 year ago

PMI just became tax deductible the other day so that is a benefit. Some loans have it built into rate and sometimes they split up your loan as an 80/20 so you avoid PMI. Check out this site for PMI rates or speak with a mortgage broker. http://www.pmi-us.com/index.html

Or you can view my site and learn some more info at http://www.ScottLushing.com

Good luck!

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#4 written by linkus86 1 year ago

Private Mortgage Insurance rates are usually set by the insurance company insuring the loan which is calculated with consideration to how much of the loan needs to be insured. In the case of an FHA loan (government insured), you pay part of your PMI upfront (1.5% of the loan amount) and the rest (.5%/12) in your monthly payment. On an FHA loan of $ 115,000 you would $ 1725 at closing plus a monthly PMI of $ 47.92. Plan on $ 67.03-$ 86.25 extra per month if not an FHA loan (.7%-.9% divided by 12 months).

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#5 written by bostonianinmo 1 year ago

The PMI premium is set by the company that is guaranteeing the mortgage. Your lender can give you the numbers. If varies based on the down payment, the size of the loan, and your credit history. Unlike P&I payments, there’s no set formula.

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