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A first time homebuyer can calculate the mortgage insurance premium with the help of a loan mortgage calculator easily. Thereby, he can know whether he can afford to pay the insurance premiums.

How to calculate mortgage insurance premiums

A loan mortgage calculator can help you to figure out the amount of money that you have to pay for private mortgage insurance premiums. A loan mortgage calculator also helps you to calculate the overall payment that you have to make on the home loan.

For example: Suppose you are buying a home for about $300,000 and making a 8% down payment ($24,000) on a 30 year Fixed Rate Loan. The rate of interest is around 0.78%. You are financing around 92% of the purchase price which is $276,000. You can calculate private mortgage insurance premium by making the following calculation: i) $276,000 x 0.0078 = $2,152.80 ii) $2,152.80 ÷ 12 months = $179.40. $179.40 is your monthly private mortgage insurance premium.

You have to pay this insurance premium on top of the mortgage interest each month. You can calculate the total amount of money that you have to pay each month with the help of a loan mortgage calculator without any difficulty.

Note: This is a guest post from Stacey Flintoff. Although D’ Intelligent Investor is a site focused on stock market investing, from time to time we include personal finance articles.

Hi ! my name is  Zigfred Diaz, Thanks for visiting my blog where you can learn stock market investing the Warren Buffett way and using other value investing methods ! Never miss a post from this blog. Subscribe to my full feeds for free. Click here to subscribe to D’Intelligent Investor by Email