1. What Is The Bankrate Mortgage Calculator With PMI?

The Bankrate Mortgage Calculator With PMI helps estimate your total monthly mortgage payment by calculating the sum of principal, interest, and private mortgage insurance (PMI) components.

2. How Does The Calculator Work?

The calculator uses the mortgage payment formula:

Where:

• \( Principal \) — The amount borrowed (in dollars)
• \( Interest \) — The cost of borrowing the money (in dollars)
• \( PMI \) — Private Mortgage Insurance (in dollars)

Explanation: This formula calculates the total monthly mortgage payment by adding together the principal repayment, interest charges, and PMI costs.

3. Importance Of Mortgage Payment Calculation

Details: Accurate mortgage payment calculation is essential for budgeting, financial planning, and understanding the full cost of homeownership, including additional expenses like PMI.

4. Using The Calculator

Tips: Enter the principal amount in dollars, interest amount in dollars, and PMI amount in dollars. All values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is PMI and when is it required?
A: PMI (Private Mortgage Insurance) is typically required when the down payment is less than 20% of the home's value to protect the lender in case of default.

Q2: How is the principal amount determined?
A: The principal is the initial loan amount borrowed to purchase the property, minus any down payment made.

Q3: Can PMI be removed from the payment?
A: Yes, PMI can typically be removed once the loan-to-value ratio reaches 80% through principal payments or property value appreciation.

Q4: Are there other costs not included in this calculation?
A: Yes, this calculator doesn't include property taxes, homeowners insurance, HOA fees, or other potential housing expenses.

Q5: How often should I recalculate my mortgage payment?
A: You should recalculate whenever there are changes to your interest rate, loan balance, or when PMI is added or removed from your payment.