PMI Mortgage Calculator
January 6, 2008
PMI is often charged on loans that have less than 20% LTV. It is essentially a useless insurance program which only benefits your lender. If you get foreclosed, the lender collects on the insurance, and you still face all the negative consequences of being foreclosed on, including a potential tax liability.
One should always calculate for pmi prior to budgeting on a home purchase. Otherwise you may purchase more home than you can safely afford.
[…] to always use a mortgage calculator before buying a home. Fees, closing costs, and PMI can often render a house unfordable, even when […]
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