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| Private Mortgage Insurance (PMI) Formula: LTV = Loan Amount/Home Value x 100 PMI Monthly Payment = PMI*Loan Amount/12 | |||
Private Mortgage Insurance (PMI) Definition Do you work in the real estate industry? Is your job to provide lenders with private mortgage insurance to protect them against great loss should their borrowers default on a mortgage? Perhaps you are just curious about the cost of private mortgage insurance for your business? Or are you getting ready to buy a home? If any of these apply to you read on to learn how our free PMI calculator can help you. What is Private Mortgage Insurance? Most lenders require that you purchase private mortgage insurance for home loans that have a loan-to-value (LTV) percentage more than 80 percent. If you are in this category, then you are likely seen as a risky investment. Private mortgage insurance allows the borrower to make a smaller down payment than would normally be required. Sometimes this down payment is a low as 3 percent instead of the standard 20 percent. Whatever your specific needs, Calculator Pro’s PMI Calculator can get you quick, accurate, and efficient data in just seconds. You simply input the data that you have into our free, online calculator, and we return to you accurate results. Versatility and Function Use our Private Mortgage Insurance Calculator anywhere where you can access the web, whether it be on your phone, laptop, or home desktop computer. Because our calculator is free, you do not have to download any widgets or programs. You simply enter your data directly into our online Private Mortgage Insurance Calculator, and we get you your results in seconds! Here is how the calculator works: Calculator Overview You will see several categories listed on our Private Mortgage Insurance (PMI) Calculator. Here they are:
The formula for calculating PMI by hand is as follows: LTV = Loan Amount/Home Value x 100 PMI Monthly Payment = PMI*Loan Amount/12 We do the computing for you, however! Simply enter the numbers into each of the form fields on the Private Mortgage Insurance (PMI) Calculator. Then click the “Calculate!” button at the bottom of the calculator. Here is an example of what you might see when you enter the following statistics:
According to Calculator Pro’s Private Mortgage Insurance (PMI) Calculator, you will pay $125 each month for private mortgage insurance. This is based upon your loan-to-value ratio, which is 80 percent. Let’s try another example as follows:
According to Calculator Pro’s Private Mortgage Insurance (PMI) Calculator, you will pay $2,083 each month for private mortgage insurance. This is based upon your loan-to-value ratio, which is 67 percent. Spreading Your Knowledge Spread the knowledge that you have gained from using Calculator Pro’s Private Mortgage Insurance (PMI) Calculator by embedding the code for the calculator into your blog or website. You can pass along the code for friends and loved ones who also are considering buying a home and want to weigh the costs of the private mortgage insurance they are likely to have to pay to get a smaller per-month-loan payment amount. You don’t have anything to lose because Calculator Pro’s Private Mortgage Insurance (PMI) Calculator is free and you can access it anywhere in the world, 24 hours a day and seven days a week, where you can get a solid Internet connection! How to Calculate Private Mortgage Insurance (PMI) Let's be honest - sometimes the best private mortgage insurance (pmi) calculator is the one that is easy to use and doesn't require us to even know what the private mortgage insurance (pmi) formula is in the first place! But if you want to know the exact formula for calculating private mortgage insurance (pmi) then please check out the "Formula" box above. |