If you are looking for an online PMI calculator, be aware that the information you provide may not stay with the website you are looking at. We’ve covered this before when we answered the question ‘How much is PMI really?’ – and as we discovered, it’s a very simple calculation to make – you really don’t need to enter a whole bunch of information into a form on a website to get a clue.
If you really want to go ahead and use an online PMI calculator, that’s fine, but don’t use one with many fields to fill in. Stay away from any that ask for adresses, postcodes and especially personal contact information. If you do supply this information, there is every chance that your details will be passed on to companies that provide private mortgage insurance.
Remember that PMI protects the lender, not the borrower – although it is something paid for by the borrower. So if you do need to borrow 80% or more of the purchase price of the property, then unfortunately you will need PMI – it’s just one of those inevitable things.
It’s easy to calculate your own PMI in a general sense by figuring out 1% of the property’s purchase price. However in the interests of not making assumptions and being a little more precise with calculations, then a simple PMI calculator will be perfect. To save you looking for one, here’s a good one provided by the folks at goodmortgage.com
Remember knowing how to avoid PMI is actually a handy thing too – and there is no real need to pay this annoying extra fee to secure finance for your next property purchase. There are ways and means of doing these things. Have friends and family to chip in to get you over that crucial 20% line – or even consider a second mortgage.
Whatever you do though – don’t go filling in those multiple field online PMI calculators which demand all sorts of information. What is needed in a decent calculator is a loan figure, deposit amount, interest rate and loan term – that’s all.