A Mortgage Calculator with PMI and Why You Need
A Good Mortgage Calculator with PMI when Purchasing a Home Tells
You your Exact Payment!
If you have been considering either purchasing a
home or you already own a home but have some concerns about your
private mortgage insurance, a good PMI calculator can come in
A mortgage calculator with pmi can help you
determine both how much money you may be required to add on to your
mortgage every month as a result of private mortgage insurance as
well as when you can expect to drop it.
Private mortgage insurance, often referred to as
simply pmi, is one of the costs that many people overlook when they
first begin to consider purchasing a home. But if you take
advantage of the assistance offered from a PMI calculator,
it won’t be any surprise at all.
Basically, private mortgage insurance is a type of
insurance that can help protect the risk of the investor or banker
in the event that you, as the homeowner, are unable to make the
mortgage and the home must be foreclosed upon.
If you purchase a home with a down payment that is
less than 20% of the home’s purchase price, you may well be
required to pay for PMI.
If you are considering the purchase of a home, a
mortgage calculator with PMI can come in handy in
understanding how PMI can affect the amount of your mortgage.
The cost of your monthly PMI will depend on two
- the amount of your mortgage
- the amount of your down payment.
In order for a mortgage calculator with pmi
to work correctly in this scenario, you’ll need to have some
information handy. For example, you will need to know:
Annual interest rate.
As an example, using a mortgage calculator with PMI, if you
purchased a home for $200,000 and made a 10% down payment with
terms of 30 years at 6.5% annual interest you would have a
$1,137.72 monthly mortgage payment.
That is only the monthly mortgage payment, however.
That does not take private mortgage insurance into
Using a mortgage calculator you could enter the
same data and discover that taking PMI into consideration, your
monthly mortgage would now be $1236.72.
Another situation in which you
would want to use a mortgage calculator with pmi would be if
you already have a mortgage and want to know how long it will be
before you are no longer subject to private mortgage insurance.
As demonstrated with the calculations from a
mortgage calculator above, removing private mortgage insurance from
your mortgage can make a difference in the amount of money you pay
You could also use a mortgage calculator with
pmi to determine the length of time that you are required to
pay private mortgage insurance.
This will usually depend on how long it takes you
to build up a sufficient amount of equity in the home.
In some cases, the lender may make a provision
within your mortgage stating that private mortgage insurance can be
dropped after a certain amount of time.
Under federal law; however you can drop the pmi
once you have 20% equity built into the home. See the link below
for further explaination.
Federal Law and
This can happen by either the home rising in value
or by your making enough payments to equal 20% equity.
In this scenario, you could use a mortgage
calculator with pmi to determine both the amount of money you
would need to have paid into the mortgage and the amount that you
have paid into the mortgage.
A New Loan with No PMI
There is a way not to pay PMI altogether; whether you purchase
or have an existing mortgage with PMI. It's called an 80/20 loan.
This option could substantially lower your monthly mortgage
payment. Go to
80/20 Mortgage Calculator to find out the details!
Similar to the first example, you’ll need to have
specific information handy to obtain correct figures from a
mortgage calculator with pmi.
Regardless of whether you are considering the purchase of a home or
simply wondering how long it will be before you can remove the
burden of private mortgage insurance; using a mortgage
calculator with pmi is a great way to get, and keep, a handle
on your monthly mortgage.
- Loan amount
- Interest rate
- Term of the loan
- Number of payments made to date