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:

Points Value Months with PMI
Closing Costs Monthly PMI
Total Closing Costs Monthly Payment
Down Payment Totally Interest Paid
Upfront Cost Total PMI
Amount Financed Total Payments
Monthly P&I  

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 : ($)
Additional Information
Annual PMI :
Down Payment :
  Standard 80% Loan Second Loan
Interest Rate : (%) (%) (%)
Length : Yrs Yrs Yrs
Points : (%) (%) (%)
Closing Costs : ($) ($) ($)
 Let Me Print That Form in PDF!

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

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