## How to estimate your mortgage payment?

Key TakeawaysCalculate your mortgage payments before you start house shopping and repeatedly throughout the process to make sure that your payments will fit into your budget.Your mortgage payment is made up of principal, interest, taxes, and insurance (PITI).In addition to PITI, make sure you include any HOA fees, and mortgage insurance premiums or PMI.More items…

## How do you calculate private mortgage insurance?

Then follow these steps:Identify the property value. You can get the exact figure from a recent appraisal or estimate it by using the amount you plan to offer for the house.Find the total loan amount. To estimate your PMI for a refinance, start with your current mortgage balance. …Calculate the LTV. Divide the loan amount by the property value. …Estimate your annual PMI premium. …

## How expensive is mortgage insurance?

The cost of PMI varies depending on factors such as your outstanding mortgage balance and credit score. Private mortgage insurance can add $30 to $70 per $100,000 to your monthly mortgage payment. “The higher the loan to value, the greater the cost to the borrower,” said Meier.

## What is the average mortgage insurance rate?

Regardless of the value of a home, most mortgage insurance premiums cost between 0.5% and as much as 5% of the original amount of a mortgage loan per year. That means if $150,000 was borrowed and the annual premiums cost 1%, the borrower would have to pay $1,500 each year ($125 per month) to insurance their mortgage.