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How do I use a PMI mortgage calculator?

Using a PMI Mortgage Calculator Online

If you are purchasing a new home and have a feeling that you may need to take on PMI, you will want to do some research first with a PMI mortgage calculator. You can find free PMI mortgage calculators on the Internet from many different financial websites. These are fairly easy to use and only require you knowing some simple numbers to plug in.

First, know the purchase price of the home you are interested in. This is the most important number to plug into the calculator.
Next, plug in the amount of down payment that you will be making. This number combined with the first will tell the PMI mortgage calculator exactly what loan to value ratio it is dealing with.
Lastly, you will need to select the type of loan you want calculations for.

A PMI mortgage calculator will give you different numbers for a 10, 15, 20, or 30 year mortgage because the term will determine the percentage rate for the insurance. Once you have all of this information plugged in, the PMI mortgage calculator will give you all of the answers you want for each type of loan, purchase price, and down payment that may be a possibility for your purchase.

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