Should I Take Out a Second Loan or Get PMI?

If you still can’t afford the down payment on a home even after you’ve taken out a loan, you might want to consider taking out a second loan. The other option is purchasing PMI (Private Mortgage Insurance). With PMI, you can pay a lower down payment, but in the long run, pay a higher total amount. Use this calculator to determine if you should take out a second loan or purchase PMI.

Input
Property Info
Home Value ($)
Additional Info
Annual PMI
Downpayment
Standard 80% Loan Second
Interest (%) (%) (%)
Loan Length (Yrs) (Yrs) (Yrs)
Points (%) (%) (%)
Closing Cost ($) ($) ($)
 
Financial Analysis
  Standard 80% Loan Second
Points Value $2,250.00 $3,000.00 $250.00
Closing Cost $1,200.00 $700.00 $1,000.00
Total Closing Cost $3,450.00 $4,950.00
Downpayment $25,000.00
Upfront Cost $28,450.00 $29,950.00
Amount Financed $222,750.00 $197,000.00 $24,750.00
Monthly Payment $1,389.67 $1,149.64 $215.60
Months with PMI 87 0 0
Monthly PMI $93.75 $0.00 $0.00
Total Monthly Payment $1,483.42 $1,365.24
Total Interest Paid $277,531.27 $230,927.70
Total PMI $8,156.25 $0.00 $0.00
Total Payments $508,437.52 $452,677.70
 

DISCLAIMER:
Although this is an estimation of the information you provided, none of these figures are guaranteed. Final statistics can only be given by the financial institution that supplies you with the loan or other financial services. You must double check with your provider to ensure accurate information. Please read the Terms of Use for further details.
 
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