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How To Estimate PMI (Private Mortgage Insurance)

How To Estimate PMI (Private Mortgage Insurance)

An agent asked for this blog in December, and I am finally getting to it but should have done so much sooner because it was a great request!

As an aside, if any readers would like to see me blog about something in particular, please feel free to email your requests, as I greatly appreciate them.

Estimating Private Mortgage Insurance (PMI)

In July, I explained why PMI is pretty awesome, and here are a few of the reasons: it is very cheap now; it is easier to eliminate now; and it saves deals when appraisals come in low or when debt ratios are too high.

But – I did not explain how to estimate PMI, or show just how low payments can be.

The below two tables set our various PMI estimates for a $500,000 loan with two different Credit Score scenarios (680 and 740) and three different loan-to-value ratios (85%; 90%; and 95%).

Note that the “rates” are expressed in annual terms as a % of the loan amount, e.g. a “rate” of 0.2 against a $500,000 loan will give you a monthly payment of $83 (0.2 x $500,000/12 = $83).

The below rate estimates were obtained by “shopping” PMI with several of the top PMI firms, including MGIC, Radian, Arch MI, and National MI.

PMI In Terms of Annual “Rates”

Score: 6800.20.40.53
Score: 7400.130.230.3

PMI In Terms of Monthly Payments

Score: 680$83$167$220
Score: 740$54$96$125

PMI Rate Cards (So Consumers Can Shop Rates Themselves)

The below links take readers to rate cards for three of the PMI firms we work with.




Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167