How to determine PMI

Sorry if this has been covered, I scrolled through several pages to make sure…

Is there a basic formula to determine what the PMI will be if you don’t put down 20% for investment loans? I know it’s probably different depending on the lender. Is there a ballpark figure you account for when trying to determine monthly cash flow?


Hello Beemnseven,

Here is the link to a PMI company’s calculator:

Most Mortgage Insurance company’s provide estimating calculators on their websites. This one is from MGIC.

I hope this helps.

If you put down 20% there will be no PMI.
PMI is only present when the LTV is over 80% of the purhcase price. Many people avoid PMI by doing 2 loans, depending on if your putting money down. You get 1st loan for 80% and the second loan for the remainder of the funds needed…for ex. 80/20 is 100% financing with no PMI…80/15/5 means 1 loan for 80%, 2nd loan for 15% and buyer is putting down 5% of the purchase price…
My advice…avoid PMI, its about 1/2% of the loan.