Posted on: 25th Sep, 2009 10:58 pm
how is pmi amount figured?
Depenign on what is the down payment the PMI will be different
In FHA they need you to pay 1.75% MIP upfront when you make less then 20% down payment
In FHA they need you to pay 1.75% MIP upfront when you make less then 20% down payment
I think there is no such direct formula for calculating PMI. But it depends on How much the difference is to get you under your 80% LTV. So, If you only pay 10% down you will have a larger monthly PMI amt. than if you paid 15% down. So, the closer to 20% down the less the PMI pymts will be and the shorter amt. of time you will have to pay it.
But ideally one should avoid PMI.
But ideally one should avoid PMI.
It depends upon total house cost & % down payment.
As long as you are not reaching to the level of 20% equity, you need to pay PMI
As long as you are not reaching to the level of 20% equity, you need to pay PMI