PMI Entered-Rate Cost Worksheet

This is an entered-rate cost worksheet, not an eligibility or cancellation test. Enter the home price, down payment as a percentage of that price, and an annual PMI rate supplied by a lender, insurer, or scenario. The worksheet derives the down payment and loan amount, applies the entered rate to that loan amount, and displays loan-to-value (LTV) for context.

Exact arithmetic

$\text{loan}=\text{home price}\times(1-\text{down payment percent}/100)$ $\text{annual PMI}=\text{loan}\times\text{entered PMI rate}/100$ $\text{monthly PMI}=\text{annual PMI}/12$

LTV is the loan amount divided by home price. It describes this entered price-and-down-payment scenario; it does not trigger or suppress the premium. At any LTV, a zero entered PMI rate produces zero, and a positive entered rate is applied without an 80% threshold decision.

Example: estimating private mortgage insurance

With a $400,000 home price, 10% down, and an entered annual rate of 0.58%:

• down payment is 400,000×0.10= $40,000;
• loan amount is 400,000-40,000= $360,000 and LTV is 90%;
• annual PMI is 360,000×0.0058= $2,088;
• monthly PMI is 2,088/12= $174.00.

What this estimate leaves out

Do not use the LTV display to decide whether mortgage insurance is required or may be cancelled. The worksheet does not model an insurer’s pricing factors, premium changes, amortization, appraisal rules, loan program, cancellation rights, or jurisdiction-specific requirements. Common mistakes include entering the down payment as dollars instead of a percent, or entering a monthly rate where the worksheet expects an annual percent.

Use actual lender or insurer disclosures for the rate, pricing, eligibility, and cancellation terms.

For a separate principal, interest, tax, and insurance scenario, use the PITI calculator.

Arithmetic boundary

The loan, LTV, annual amount, and monthly amount are transparent publisher arithmetic applied only to the values entered in this worksheet. No external source is attributed to these equations.