How to Calculate Mortgage Insurance (PMI)
Find the purchase price.. Determine the loan-to-value (LTV) ratio.. Determine the terms of the loan.
Steps
1
Find the purchase price.
Find the purchase price.
2
Determine the loan-to-value (LTV) ratio.
Determine the loan-to-value (LTV) ratio.
3
Determine the terms of the loan.
Determine the terms of the loan.
4
Determine the mortgage insurance rate.
Determine the mortgage insurance rate.
5
Do the math.
Do the math.
6
Understand that your mortgage insurance will "fall off" if you build up enough e
Understand that your mortgage insurance will "fall off" if you build up enough equity in your home.
7
Know that your credit score will also affect your mortgage insurance.
Know that your credit score will also affect your mortgage insurance.
8
Understand that some lenders may waive MI altogether if the buyer agrees to a hi
Understand that some lenders may waive MI altogether if the buyer agrees to a higher interest rate.
9
Know the difference between prepaid insurance and monthly insurance.
Know the difference between prepaid insurance and monthly insurance.
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