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

Use this calculator to weigh the advantages and options of taking a second mortgage and lowering your PMI all the way down to zero.

The default entries provided in the calculator show a home value of $300,000 with a down payment of 10% and an annual PMI of 0.5 %. The Financial Analysis results show total payments of $515,473.16 for the Standard loan and $465,556.26 for the 80%/Second package, which is substantially lower.

To use the calculator, enter the following information:

Property Information: Home Value.
Additional Information: Annual PMI (choose dollars or percentage) and Down Payment (choose 5%, 10% or 15%).
Standard, 80% loan and 2nd loan values for the following fields: Interest Rate, Length (in years), Points (percentage) and Closing Costs.

The calculator will compute the following information:

The calculator can also produce a PDF output file for download, and you can click the check box to view the Schedule Table for the time frame selected. The Schedule Table fields include: Number (of payment month), Interest, Principal, PMI and Balance. It also shows totals for every field after each year of the mortgage.

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 :	($)	($)	($)
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Show Schedule Table

Financial Analysis

	Standard	80% Loan	Second
Points Value :	$2,700.00	$3,600.00	$300.00
Closing Costs :	$1,200.00	$700.00	$1,000.00
Total Closing Costs :	$3,900.00	$5,600.00
Down Payment :	$30,000.00
Upfront Cost :	$33,900.00	$35,600.00
Amount Financed :	$270,000.00	$240,000.00	$30,000.00
Monthly PI :	$1,408.45	$1,166.65	$253.16
Months With PMI :	75	0	0
Monthly PMI :	$112.50	$0.00	$0.00
Monthly Payment :	$1,520.95	$1,419.81
Total Interests Paid :	$237,041.21	$195,561.54
Total PMI :	$8,437.50	$0.00	$0.00
Total Payments :	$515,473.16	$465,556.26