busybee
12-22-2008, 10:26 AM
How is PMI insurance calculated? I'm trying to obtain a loan for 534,000 in California. The loan to value is 84.76%. I'm being quoted over $300 per month. I thought it would be closer to $170 per month.
Roger_Silvester
07-20-2009, 03:24 AM
The amount of premium that you will be paying depends on various factors, including the Loan to Value ratio the type of mortgage (fixed rate, arm, stated income, etc) and your credit profile. As an example, let us work with a loan amount of $300,000 and a PMI of .5%. In this case, the monthly PMI payment would be $125.( $300,000 x .5% = $1,500.00 yearly/ 12 months = $125)
This amount is added to your monthly mortgage payment. The amount can be higher or lower than this example, depending on the factors stated above.