TOOLS & RESOURCES
Mortgage calculators are automated tools that show home buyers what financial implications of changes in one or more variables in a mortgage financing arrangement impact their payment. You’ll have property taxes, homeowners insurance, and perhaps a PMI payment to cover all your monthly expenses. Mortgage calculators are used by consumers to determine monthly repayments. They are used by mortgage providers to determine the financial suitability of a home loan applicant.
We’re here to help. Work with your personal instructor from 101 Financial to help you understand your mortgage 101 training guide. This free online mortgage loan calculator helps you understand the benefit of reducing mortgage debt early.
How Can A Mortgage Calculator Help You?
You can use this mortgage calculator to help you understand the impact on your budget when buying a new home.
Our other tools give you a mortgage calculator amortization schedule. Check with one of our personal instructors to see how to fully use the amortization schedules to your advantage.
If you’re looking to buy a new home on Zillow, try our mortgage calculator using Zillow home prices. You can even add in your escrow payments as part of the down payment for this to become a mortgage calculator payment with escrow.
What Is PMI Insurance And How Much Is PMI?
PMI, or private mortgage insurance, is only required when a homebuyer cannot afford a 20% down payment, but there are some ways to get around it.
Private mortgage insurance might be required if you have a conventional loan and less than 20% down. Instead of paying PMI, work with 101 Financial to see how you can quickly build your down payment eliminating PMI. Like other kinds of mortgage insurance, PMI protects the lender—not you—if you stop making payments on your loan. PMI is arranged by the lender and provided by private insurance companies in case you stop payment. But you’re still on the hook for the loan and failure to pay affects your credit ratings and more. Talk to us to find out how to avoid all the pitfalls of home purchases.
How Is PMI Calculated On A Mortgage (otherwise known as mortgage insurance)?
To calculate mortgage insurance (PMI), identify the purchase price of the home and the loan-to-value ratio by taking the amount of money you borrowed on the loan and dividing it by the value of your property. Next, determine the mortgage insurance rate by using a table on a lender’s website. If you are putting 20% down, you should not have to pay mortgage insurance or PMI. The average cost of private mortgage insurance, or PMI, for a conventional home loan, ranges from 0.58% to 1.86% of the original loan amount per year, according to Genworth Mortgage Insurance.