# How Is PMI Percentage Calculated?

## How is PMI amount calculated?

The PMI formula is actually simpler than a fixed-rate mortgage formula.

• Find out the loan-to-value, or LTV, ratio of your house.
• 450,000 / 500,000 = 0.9.
• 0.9 X 100 = 90 percent LTV.
• Look at the lender’s PMI table.
• Multiply your mortgage loan by your specific PMI rate according to the lender’s chart.

80%

## How can I avoid PMI without 20% down?

The traditional way to avoid paying PMI on a mortgage is to take out a piggyback loan. In that event, if you can only put up 5 percent down for your mortgage, you take out a second “piggyback” mortgage for 15 percent of the loan balance, and combine them for your 20 percent down payment.

## What is a normal PMI rate?

PMI rates vary, but may range between 0.3% and 1.2% of the loan amount on an annual basis. Your rate will depend on several factors, including: Size of your down payment.

## How much is PMI on a 250000 house?

Mortgage insurance costs vary by loan program (see the table below). But in general, mortgage insurance is about 0.5-1.5% of the loan amount per year. So for a \$250,000 loan, mortgage insurance would cost around \$1,250-\$3,750 annually — or \$100-315 per month.

## Who determines PMI rate?

Your credit score and loan-to-value (LTV) ratio have a big influence on your PMI mortgage premiums. For example, the higher your credit score, the lower your PMI rate can be. Whereas the higher your LTV, you could find yourself with a higher you PMI bill. See below for a comparison of costs between two scenarios.