How to use
- Enter the loan the premium is charged on.
- Enter the annual rate from the quote. A half of one percent is 0.5, not 50.
- Press Calculate. The hero is the monthly amount. The annual amount is beside it.
- Add that monthly amount to principal and interest yourself. The mortgage calculator has a line for amounts you type. It does not compute PMI.
How it's calculated
Annual premium = loan × rate ÷ 100. Monthly = annual ÷ 12.
A rate of zero produces a zero premium. The page will not fill in a typical rate.
Worked example
A $300,000 loan at 0.5 percent a year is $1,500 a year, or $125 a month. At 0.8 percent the same loan is $200 a month. The rate is the whole difference.
Assumptions
A level annual rate on the original loan, billed in twelve equal parts. Some policies step the rate down as the balance falls. If yours does, this single rate does not model the steps.
FAQ
Where do I get the rate?
From the loan quote or the insurer. This page does not publish a table.
Is PMI the same as homeowner's insurance?
No. Homeowner's insurance is part of escrow if you type it there. PMI is this premium.
Does an 80 percent loan-to-value cancel it?
This page does not cancel anything. It prices the rate you typed for as long as that rate applies.
Can I enter the premium in dollars?
If you already know the annual dollars, divide by 12. This form wants the loan and the percent.