PMI removal calculator to calculate the monthly PMI payment for your mortgage. The PMI payoff calculator will show you the cost of PMI and find out when your PMI will be paid off.
PMI is private mortgage insurance that borrowers are required to pay when their down payment is less than 20% of their home value for traditional mortgages. Borrowers who put down less than 20% are viewed as riskier to the banks. During financial difficulties, it's easier for borrowers with less equity in the house to stop payment and walk away. To offset this additional risk and protect themselves, banks require the borrowers to pay for the PMI or when loan-to-value (LTV) is greater than 80%. Banks and lenders will automatically remove the PMI once the borrower's equity on the house exceeds 20%, which may take a few years. The PMI rate is usually about 0.3 percent to about 1.5 percent of the original loan amount per year depending on your credit score and other factors. Simply enter the home value, mortgage amount, and the yearly PMI rate, and the PMI payoff calculator will get an estimated monthly PMI payment for you. The PMI Cost Calculator will calculate the payoff date for your private mortgage insurance, and you will also get the total amount of PMI that you paid over the years.
There are a few ways that a borrower can reduce the LTV and remove the PMI. Since LTV is calculated based on the loan size and the value of your home, you can either reduce the size of the loan or increase the value of your home to have a lower LTV.
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