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Home Mortgage Calculator and PMI Addition
September 27th, 2009 by admin
It’s not enough to whip out your fancy new home mortgage calculator to figure out different home loan scenario monthly payments for differing loan amounts, down payments, and interest rates. You must figure private mortgage insurance (PMI) into the equation also, if you are going for an FHA home loan or a conventional mortgage with a loan-to-value (LTV) ratio that is under 80 percent.
The changes in mortgage risk have skyrocketed with the heavy load of home foreclosures and continued plummeting home prices in the US. The result of this risk as it relates to PMI has been dramatic. PMI is not cheap and the larger your loan amount and the higher your LTV loan scenario, the more expensive it will become. A principle and interest number spit out by your home mortgage calculator is fine, but you need to include the entire picture to get to the real numbers.
