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The calculation is

PMI per year = PMI rate x Loan Amount

For Example :

House value = $100,000

Loan amount = $90,000

PMI rate = 0.5%

PMI = 0.5% x $90,000 = $450 per year = $37.58 per month

Borrowers can cancel their PMI when:

• The PMI has been in force for over 24 monthes and must be owner-occupied property.
• No late mortgage payments in the last 24 months.
• The Loan-to-Value reaches 80% or lower. In other words,down payment is 20% or more.

Ways to Avoid PMI is to obtain a secon mortgage.

For example, 95% Financing - 5% Down. 1st loan has to be at 80% and the second is for 15%.

Note: The information provided on or through this site and all mortgage calculators is for purposes of general consumer education only. and is not intended as a substitute for advice from a qualified professional.