Rob Gotschewski

Direct Line
(847) 423-5144
Mobile Phone
(847) 331-5972
Fax
(847) 890-6392

homefinder

ask baird & warner

Quick Lookup
Type in the street name or ID #


Rob Gotschewski	1-888-ROB-AT-BW
Contact Me View Featured Properties Printable Profile	Schaumburg Office

<<Mortgage & Financial Calculators

What is Better: take a Second Loan or Pay PMI?

Input Information

Property Information
Home Value :		($)
Additional Information
Annual PMI :		($) (%)
Down Payment :		5 % 10 % 15 %
	Standard	80% Loan	Second Loan
Interest Rate :	(%)	(%)	(%)
Length :	Yrs	Yrs	Yrs
Points :	(%)	(%)	(%)
Closing Costs :	($)	($)	($)
Let Me Print That Form in PDF!
Show Schedule Table

Financial Analysis (Switch to Plain English)

	Standard	80% Loan	Second
Points Value :	$0.00	$0.00	$0.00
Closing Costs :	$1,200.00	$700.00	$1,000.00
Total Closing Costs :	$1,200.00	$1,700.00
Down Payment :	$30,000.00
Upfront Cost :	$31,200.00	$31,700.00
Amount Financed :	$270,000.00	$240,000.00	$30,000.00
Monthly PI :	$1,662.44	$1,400.57	$278.10
Months With PMI :	91	0	0
Monthly PMI :	$112.50	$0.00	$0.00
Monthly Payment :	$1,774.94	$1,678.68
Total Interests Paid :	$328,477.12	$284,265.62
Total PMI :	$10,237.50	$0.00	$0.00
Total Payments :	$608,706.01	$554,257.21

Plain English Help (Switch to Financial Analysis)

When you take out your home mortgage loan, you might want to consider taking out an 80/15 loan in order to avoid PMI. By going this route, you could potentially save a great deal of money, though your upfront costs may be a bit more. Pretend the home you are interested in purchasing has a value of $300,000.00 and you are prepared to put down $30,000.00 as a down payment. With a standard 30 year loan with an interest rate of 6.250% and 0.000 point(s), you will have to pay $31,200.00 up front for closing and would have a monthly payment of $1,774.94. In the end, you will have paid $608,706.01 toward your home. If you opt for an 80/15 loan, you can avoid making PMI payments altogether. Because it involves taking out two loans, however, you will have to pay a bit more in upfront costs. In this scenario, that amounts to $31,700.00. Your monthly payments, however, will be slightly LESS at $1,678.68. And, in the end, you will have paid only $554,257.21 – that’s a total SAVINGS of $54,448.80!

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your own financial advisor.


© 2007 Baird & Warner. All rights reserved. 11 W. Schaumburg Rd. • Schaumburg, Illinois 60194 • 847-524-4444 Terms of Use Privacy Policy Site Map