To calculate your PMI (private mortgage insurance), first determine your loan-to-value (LTV) ratio which can be found by dividing the remaining mortgage balance by the appraised value of your home. Next, Look up your LTV ratio on your lender's PMI rate chart. With that, you can determine your yearly cost of private mortgage insurance by taking the remaining principle balance on your mortgage and
. multiply it by your PMI rate. Finally, determine your monthly PMI premium by taking your yearly private mortgage insurance cost and divide it by the 12 months of the year.
