Don’t Let The Mortgage Insurance Costs Surprise You

When calculating the monthly mortgage payment for new home purchase be advised that you may be required to pay private mortgage insurance depending upon the size of the down payment.  Mortgage insurance requirements and costs will depend on the loan-to-value ratio.  This ratio is computed as the value of the loan divided by the value of the asset you are buying or using as collateral.  The mortgage calculator will automatically compute the loan to value ratio based on the home price and down payment or loan amount.  The loan to value will be used to determine how large a loan a borrower can obtain based on the home value.  Depending on the loan-to-value ratio, but for most loans with a loan to value in excess of 80%, private mortgage insurance will be required.  The comprehensive mortgage calculator will factor in mortgage insurance when the down payment is lees than 20%.

This entry was posted on Wednesday, December 10th, 2008 at 10:53 am and is filed under Mortgage Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.