Pmi Insurance Calculator

Step-by-Step Guide to Using the PMI Insurance Calculator

Step 1: Enter Home Purchase Price

Begin by locating the field labeled Home Purchase Price ($). Enter the price of the home you are planning to purchase. Ensure that the value falls within the range of $50,000 to $10,000,000.

Step 2: Enter Down Payment Amount

Next, find the field labeled Down Payment ($). Input the amount you intend to pay as a down payment. This field accepts any non-negative value.

Step 3: Select Credit Score Range

Proceed to select your credit score range from the Credit Score Range options. Choose your range carefully as it affects your PMI rate:

• 760 or higher: PMI rate is 1.25%
• 740-759: PMI rate is 1.40%
• 720-739: PMI rate is 1.75%
• 700-719: PMI rate is 2.00%
• 680-699: PMI rate is 2.25%
• 660-679: PMI rate is 2.50%
• 640-659: PMI rate is 2.75%
• 620-639: PMI rate is 3.00%

Step 4: Select Loan Term

Now, choose the desired loan term from the Loan Term options. You can select between 30, 20, or 15 years based on your financial planning.

Calculating Results

After completing the input fields, the calculator will compute and display the results automatically. These results include:

• Loan-to-Value Ratio: This percentage indicates the ratio of the loan amount to the home’s purchase price, calculated automatically.
• PMI Required: This will state “Yes” if the Loan-to-Value Ratio is greater than 80%, indicating PMI is necessary.
• Monthly PMI Payment: If PMI is required, this will show the amount you need to pay monthly.
• Annual PMI Cost: This calculates your yearly PMI expenditure.
• Total PMI Until 80% LTV: Provides the total PMI cost until the Loan-to-Value Ratio drops to 80%.

Use these calculations to better understand your PMI requirements and financial commitment over time.