MORTGAGE CALCULATOR AND IMPORTANT INFORMATION FOR BUYERS

You can use this handy Mortgage Calculator to assist you with calculating your approximate mortgage payment. This tool is only an estimate.  Please consult with a mortgage lender/broker to get an official estimate of a potential mortgage payment.

PMI - Private Mortgage Insurance

Whether it's called “private mortgage insurance” (PMI) or just plain “mortgage insurance” (MI), mortgage insurance is an insurance policy which protects the lender in the event that you, the borrower, fail to make your mortgage payments. You pay for a policy as an inducement for the lender to offer you financing.

In general, if you can't (or don't want to) come up with a 20 percent down payment to buy your home, or don’t have a 20 percent equity stake when you refinance, you'll be required to purchase a private mortgage insurance policy as part of the mortgage process.  It's a tenet of mortgage lending that borrowers who don't have fairly substantial equity in their home are more likely to default. That's primarily why lenders insist that buyers borrow no more than 80 percent of the home price. Of course, having to come up with the other 20 percent -- in cash -- discourages many potential buyers who don't have such a large sum of money on hand.

The average cost of private mortgage insurance, or PMI, for a conventional home loan ranges from 0.55% to 2.25% of the original loan amount per year, according to Genworth Mortgage Insurance, Ginnie Mae and the Urban Institute.  As an example; $250,000 loan balance x .0055 = $1,375 per year/12 months = $114.58 per month.  

This calculator is only provided to assist

you with an approximate mortgage payment.  You should consult with a

mortgage company or bank for a

payment which will be specific to your

exact financial situation.

© 2019 by Team Z Real Estate Group.

208.850.5292 for Scott and 208.850.7242 for Candi

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Data collected from IMLS. Prices are sold single family homes only reflected from 01/01/2020 to current.  Average days on market and median sales price  are from first day of previous month to current.

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Data collected from US Census Bureau

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