Financed Mortgage Insurance Compared To A Combo Loan - Calculated Industries 3430 User Manual

Finance Mortgage Insurance compared to a Combo Loan
Financed Mortgage Insurance loans allow for higher than 80% LTV
on a straight first loan because the Mortgage Insurance added to the
loan amount. Another benefit to the Financed MI loan is the interest
is tax deductible. In many cases the Financed MI loan may be better
than a combo loan.
We will compare a Financed Mortgage Insurance loan to a Combo
Loan, with a loan amount of $90, 000.
Loan Amount
Interest
Term
MI
LTV
In order to compare a financed mortgage insurance loan to a combo
loan, you must first calculate the monthly MI premium and enter it as
mortgage insurance as you would a standard fixed-rate loan (do not
add the Financed MI Premium to the loan amount in this comparison).
STEPS
1. Find the Financed Mortgage Insurance premium:
Clear calculator
Multiply loan amount x MI 9 0 ) x • 6 2 % =
2. Find Monthly MI Premium and enter it into the Mortgage
Insurance key:
Enter financed MI into
Loan Amount
Enter Term in years
Enter annual Interest rate 6 ˆ
Calculate monthly MI
premium
Enter monthly MI premium into
mortgage insurance
3. Enter loan values:
Enter Loan Amount
Enter Term in years
Enter annual Interest rate 6 ˆ
Calculate monthly P&I
Payment with MI
74 — Q
UALIFIER
FINANCED
MI LOAN
90,000
6%
30
.62%
90%
KEYSTROKES
o o
l
3 0 T
p
= s b s 9
— DO NOT CLEAR CALCULATOR —
9 0 ) l
3 0 T
p p
P ® III
LUS FX
FIXED-RATE
COMBO LOAN
(1st TD – 2nd TD)
90,000
6% – 8%
30 year – 30 year
--
80% – 10%
"run" 3.35
90,000.00
"run" 542.94
DISPLAY
0.00
558.00
558.00
30.00
6.00
3.35
30.00
6.00
(Cont'd)