How To Calculate PMI?

Get the loan amount

Determine the down payment amount

Calculate the loan-to-value ratio

Check whether PMI is required based on the lender’s threshold

Find the PMI rate from the lender or insurer

Multiply the loan amount by the PMI rate

Divide by 12 to get the monthly PMI payment

Add the PMI payment to your monthly mortgage payment

Recalculate PMI as the loan balance changes if needed

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