- 1). Use the PMI monthly payment formula. Multiply the cost of your home by the PMI rate. Divide that number by 12. For example, if your loan is $180,000, multiply that number times your PMI rate.
- 2). Use your PMI rate. The rate is based on an LTV (loan-to-value) percentage rate. This is the level of debt divided by the property value. In this example, the PMI rate is .0052.
- 3). Calculate the annual PMI cost. Multiply your loan amount, $180,000, by the rate, .0052. Your annual PMI cost is $936.
- 4). Find your monthly payment. Divide the annual rate by 12. This amount is your loan's monthly PMI premium. Divide $936 by 12. Your monthly payment in the example is $78.
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