Mortgage and PMI Calculator
This mortgage and pmi calculator can be used to figure out monthly payments of a home mortgage loan, based on the home's sale price, the term of the loan desired, buyer's down payment percentage, and the loan's interest rate. This calculator factors in PMI (Private Mortgage Insurance) for loans where less than 20% is put as a down payment. Also taken into consideration are the local property taxes, and their effect on the total monthly mortgage payment.
Want your monthly payments lower? Use our little-known way to reduce your home mortgage below…
What is the PMI rate of my mortgage? Wonder no longer, our PMI calculator will show you what your PMI private mortgage insurance rate could possibly be.
What is pmi insurance?
PMI stands for Private Mortgage Insurance. People on the market to buy a home who put down 20% or less towards their home’s price are required to carry this type of insurance policy. This is protection for the home mortgage companies just in case you default on your home loan.
PMI insurance is responsible for helping millions of people get into their own home. This is because now more people have been able to qualify for a home loan with a smaller down payment. With cost of homes continuing to rise, being able to come out of pocket with less up-front money is more important that ever. Some people with special qualifications have been able to close on their home for as little as no money down.
What’s the cost of Private Mortgage Insurance
This type of insurance policy, just like any other, can vary from person to person and home to home. Some of the factors that determine your PMI insurance rate is your down payment and the amount of your home’s mortgage. A good rule of thumb is a rate of one half of one percent of your home loan’s total amount. Use the PMI calculator above to get a more accruate measure of your situation.
When Can I Cancel PMI Payments
A few years after paying down the balance on your mortgage, you’ll more than likely be in a position to cancel your PMI payments. Once you reach about 80% equity, call your home mortgage lender let them know you want to cancel your policy. If you have or are getting a FHA loan, you may be required to carry PMI insurance for the whole lifespan of your loan.
If you have not consistently stayed current with your mortgage payments, or if your credit history shows any liens placed against the property you own. It’s very likely that your home loan leander will require to continue your private mortgage insurance coverage. The only way to know for sure is to discuss it with your home loan broker.
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