How is PMI Mortgage Insurance Calculated?
The cost of PMI mortgage insurance varies according to the percent down payment and home loan mortgage, but it typically equals approximately one half of one percent of the total amount of the loan. But how exactly is private mortgage insurance calculated? For example you bought a house for $100,000, for which you put set down a 10 percent down payment. Your lender will multiply the remaining 90 percent by .005 percent. This will be $450. So, $450 is your annual PMI mortgage insurance, which is divided into monthly payments. In this case your monthly home mortgage insurance will be $37.50. If you have been paying off your monthly mortgage payments regularly, then after a few years of paying down your home mortgage loan, you should be able to eliminate the private mortgage insurance. You should keep track of your payments and contact your lender when you reach 80 percent equity so that your private mortgage insurance can be eliminated i.e. you do NOT need to pay for the mortgage insuran
