Financial

Financial - Calculating Private Mortgage Insurance

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
Amount Financed	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 $150,000 and putting 7% down on a 30 year Fixed Rate Loan, you would be financing 93% of the purchase price ($139,500). In order to calculate the Private Mortgage Insurance, you would make the following calculation:

$139,500 x 0.0078 = $1,088.10

$1,088.10 ÷ 12 months = $90.68

Your monthly Private Mortgage Insurance Premium would be $90.68. This amount would be added to your monthly house payment.

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