PMI Mortgage Calculator | HomeMortgage.com

PMI Mortgage Calculator

The PMI Mortgage Calculator is for those who would prefer to keep mortgage rates low by not paying extra in insurance (PMI) to home mortgage companies. In order to do this, one can consider taking out an 80/20 loan. Indeed, your monthly payments can be substantially lower by going this route, but this can also entail paying more money up front. For these reasons, it's important to use this calculator to help you weigh the pros and cons and decide what works best with your income.

How to Calculate PMI to Your Advantage

Of course, while 80/20 loans may cost more money at the outset, PMI payments can be avoided altogether, which can yield substantial savings over time. In order to find out if this financial route is right for you, property, PMI, and loan information must be factored in and considered. By using the PMI Mortgage Calculator, you may find that the total long-term savings add up to a difference in tens of thousands of dollars when PMI is taken out of the equation. With lowered monthly rates, one may also consider adding extra sums to their monthly payments to shorten the pay period and save even more in the long run, so you may also consider checking out the Extra Mortgage Payment Calculator to see how much more you could be saving! Check out our other mortgage calculators to figure the best mortgage solutions for your family's budget.


Input Information
Property Information
Home Value : ($)
Additional Information
Annual PMI :
Down Payment :
  Standard 80% Loan Second Loan
Interest Rate : (%) (%) (%)
Length : Yrs Yrs Yrs
Points : (%) (%) (%)
Closing Costs : ($) ($) ($)
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Financial Analysis (Switch to Plain English)
  Standard 80% Loan Second
Points Value : $2,700.00 $3,600.00 $300.00
Closing Costs : $1,200.00 $700.00 $1,000.00
Total Closing Costs : $3,900.00 $5,600.00
Down Payment : $30,000.00
Upfront Cost : $33,900.00 $35,600.00
Amount Financed : $270,000.00 $240,000.00 $30,000.00
Monthly PI : $1,449.42 $1,216.04 $253.16
Months With PMI : 78 0 0
Monthly PMI : $112.50 $0.00 $0.00
Monthly Payment : $1,561.92 $1,469.20
Total Interests Paid : $251,790.62 $213,344.38
Total PMI : $8,775.00 $0.00 $0.00
Total Payments : $530,559.60 $483,338.57
Plain English Help (Switch to Financial Analysis)

When you take out your home mortgage loan, you might want to consider taking out an 80/15 loan in order to avoid PMI. By going this route, you could potentially save a great deal of money, though your upfront costs may be a bit more.

Pretend the home you are interested in purchasing has a value of $300,000.00 and you are prepared to put down $30,000.00 as a down payment. With a standard 30 year loan with an interest rate of 5.000% and 1.000 point(s), you will have to pay $33,900.00 up front for closing and would have a monthly payment of $1,561.92. In the end, you will have paid $530,559.60 toward your home.

If you opt for an 80/15 loan, you can avoid making PMI payments altogether. Because it involves taking out two loans, however, you will have to pay a bit more in upfront costs. In this scenario, that amounts to $35,600.00.

Your monthly payments, however, will be slightly LESS at $1,469.20.

And, in the end, you will have paid only $483,338.57 – that's a total SAVINGS of $47,221.03!

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.