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CALCULATING PRIVATE
  MORTGAGE INSURANCE (PMI)

Private Mortgage Insurance is required on Conventional Loans with a down payment of less than 20%.  The Private Mortgage Insurance premium can be calculated using the following table.  (NOTE:  All rates are subject to change without notice)

Amount Financed Fixed Rate Loan Loan Buy Downs ARM 2% + 1 Year Cap
15 Yr 30 Yr 15 Yr 30 Yr 15 Yr 30 Yr
95.01% - 97% 0.79% 0.90% n/a n/a
90.01% - 95% 0.56% 0.78% 0.77% 0.88% 0.81% 0.92%
85.01% - 90% 0.23% 0.52% 0.50% 0.61% 0.54% 0.65%
80.01% - 85% 0.19% 0.32% 0.22% 0.33% 0.26% 0.37%
80% and less n/a n/a n/a

 

 

SAMPLE CALCULATION:

If you are purchasing a home for $300,000 and putting 8% ($24,000) down on a 30 year Fixed Rate Loan, you would be financing 92% of the purchase price ($276,000).  In order to calculate the Private Mortgage Insurance, you would make the following calculation:

$276,000 x 0.0078 = $2,152.80

$2,152.80 ÷ 12 months = $179.40

Your monthly Private Mortgage Insurance Premium would be $179.40.  This amount would be added to your monthly house payment. PMI for each individual may e higher if your loan has less documentation such as stated income, no doc, lower credit scores, etc.

 

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