How is PMI calculated?
Your PMI premium is fixed based on plan type (loan-to-value ratio, loan type, loan term, etc.) and is not related to your particular credit history or other individual characteristics. PMI typically amounts to about one-half of one percent of your mortgage amount annually, according to the Mortgage Bankers Association, and the premium payment is usually rolled into your monthly mortgage payment. Mortgage Insurance has gotten much more difficult to obtain and much more costly in recent years. On a $100,000 mortgage, you may be paying $1,000 per year for PMI. Feel free to call me here at Ruoff Mortgage to discuss how changes in PMI might affect you.
