Mortgage Insurance Calculator

Anyone would be inquisitive to know whether the mortgage insurance is going to help him/ her buy the home of his/ her desire. There are online Mortgage Insurance Calculators for this. These online calculators take the following aspects into consideration.

• The monthly income of the prospective borrower. One has to quote the amount prior to all the deductions.
• The cash that is available with him/her to close. This included the closing costs and the down payment.
• The interest rate has to be taken into consideration.

For the purpose of reflecting the situation one should adjust assumption such as Settlement costs in terms of percentage of the home price AND the rate of home value appreciation in terms of percentage per year.

The maximum cost of insurance can be determined easily with the help of the mortgage insurance calculator. Although one cannot deny the importance of taking the insurance policy, one cannot be 100% sure of a safe deal.

The Mortgage Insurance Calculator helps the borrower to know the duration of paying the mortgage insurance premiums on their present mortgage.

Some of the issues taken into consideration for Mortgage Insurance Calculator are:

General Loan Assumptions

i.            Purchase Price

ii.            Loan Type ( Fixed Rate Or ARM )

iii.             Loan Amount

iv.            Taxes/Insurance/HOA (Monthly)

v.             Interest Rate in %

vi.            Interest-only

vii.              Term in months

viii.            Months Interest-only

Piggyback Loan Assumptions

i.            First Loan Amount and First Loan Rate in %

ii.            Second Loan Amount and Second Loan Rate in %

iii.            Second Loan Term in months  and Second Loan Interest Only

iv.            Annual Rate Adjustment in %

v.            Life Time Rate Adjustment in %

Loans to Compare

i.            Loan 1

ii.            Loan 2

iii.            Loan 3

Additional Information

i.             Tax Bracket

ii.            Investor Property

iii.            Manufactured Housing

iv.            Rate-Term Refinance

v.             Cash-Out Refinance

vi.             Second Home

vii.            Paid Annually

viii.             Potential Neg-Am

ix.             Relocation

To be eligible for mortgage insurance, loans should not be above 97% LTV

Most of the borrowers want the results of the Mortgage Insurance Calculator to be presented in tabular format showing

1.      Combined loan to value OR Loan Amount

2.       1^stLoan P&I

3.       2^ndLoan P&I

4.       Monthly MI

5.       Taxes / Insurance / Home Ownership Accelerator

6.       Total Monthly Payment

7.       1^st Year Tax Savings

8.      Effective 1^st -Year Monthly Payment

9.       Year 4 Payment

10.   Year 6 Payment

11.   Year 10 Payment