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Emma Said:

how do I calculate mortgage insurance?

We Answered:

there are too many factors for you to calculate it - starting with which KIND of mortgage insurance you're talking about.

Sergio Said:

how do you calculate Mortgage Insurance?

We Answered:

Here is a rate(factor) card:
http://www.mgic.com/pdfs/71-6704.pdf

This is for calculating standard MI. Look at page 2, it will give you a little more of an idea. This card is the actual card we Lenders use to price MI for GFE's. If we are off, underwriters will adjust MI appropriately.

As far as the actual calculation... here we go(so I believe). Take the appropriate factor and place it into a mortgage calculator:
http://www.nnnstore.com/mortgagecalculat…

Take the annual interest only portion and divide by 12. That will be your monthly MI payment.

As far as reading the rate card, you will have to figure out what your ltv and program is. For simplicity sake, look at the 30yr fixed MI, I believe the appropriate MI levels are in gray. The MI rates change every 5%.

Don't go too crazy with the card, cause it's easy to get lost looking at it.

If you need to do funky things like go stated or no-doc or if you are buying a niche property, there will be an add on's to the MI rate.

Joann Said:

where we calculate the insurance on mortgage loan?

We Answered:

The two kinds of insurance related to mortages are the hazard insurance, usually called homeowners insurance. That is usually required to be in place at closing. You get that from a company that sells homeowners insurance. Many national companies do this, as well as smaller regional companies. An independent insurance agent can sometimes get you a good price on this by shopping a number of large carriers.

The other kind of insurance necessary on some mortages is called Private Mortgage Insurance, or PMI. This is required when you have a low down payment, as protection for the lender if you should default on the loan. You have to pay the premium for this insurance, but the beneficiary is the lender. You will still owe the money and your credit rating will still be damaged if you default on your loan, even with this insurance. It's just customary to charge it separately because lenders don't require it if you have a larger down payment. The theory is that if you have enough equity, you will sell your house and pay off your loan rather than take the credit hit from defaulting, even in a no-recourse state.

So, what you might be asking for is the formula for PMI premiums. There are calculators for that available on the web. I used one and found that the PMI on a 200,000 purchase price with 10,000 down (this is a 95% loan to value ratio) is $144.08

This link has a calculator on it after two panels that try to get you to go someplace else to get a pitch for a loan product, so look carefully before you click. http://www.hsh.com/calc-pmionly.html

Rachel Said:

How do I calculate PMI mortgage insurance on an FHA loan?

We Answered:

Hi

On FHA loan, Mortgage Insurance is charged as against PMI which is charged on conventional mortgage.

On an FHA loan the borrower will be charged a mortgage insurance premium equal to 1.50% of the purchase price of the property and a renewal premium of .500% in subsequent years.

Hope this helps!