Hello, in the first scenario, why did you multiply $350,000 by 65% ? Where did the 65% come from? I did hear you say because the down payment wasn’t enough to get rid of the MI, but I am still not understanding why you used 65%?! Also, at the beginning you stated the borrower put down $50,000, so why didn’t you take the $50,ooo from the $350,000 before you started the calculations?
Hello Lakinda, so he says 50K just to throw numbers but that doesn´t meet the PMI 20% rule so as he's using Arizona as an example, he gets the 65% as a PMI FACTOR (random number again, as well as hazard and taxes) if in this case the down payment would be more than 20% you wouldn't use PMI factor. He didn't take the 50k because hes calculating the PAYMENT of a sales price, he actually explained it at minute 5:29 and 6:08, before that he said that you can start with a loan amount 350k and come up with a payment, or you can start with a payment $2,245 and come up with a loan amount 350K
The PMI is calculated from the loan amount no from the price of the property. 65% is only a number he gave based on several factors, but for this case is random. However, PMI was calculated wrong in my opinion.
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Hello, in the first scenario, why did you multiply $350,000 by 65% ? Where did the 65% come from? I did hear you say because the down payment wasn’t enough to get rid of the MI, but I am still not understanding why you used 65%?! Also, at the beginning you stated the borrower put down $50,000, so why didn’t you take the $50,ooo from the $350,000 before you started the calculations?
Hello Lakinda, so he says 50K just to throw numbers but that doesn´t meet the PMI 20% rule so as he's using Arizona as an example, he gets the 65% as a PMI FACTOR (random number again, as well as hazard and taxes) if in this case the down payment would be more than 20% you wouldn't use PMI factor.
He didn't take the 50k because hes calculating the PAYMENT of a sales price, he actually explained it at minute 5:29 and 6:08, before that he said that you can start with a loan amount 350k and come up with a payment, or you can start with a payment $2,245 and come up with a loan amount 350K
The mortgage math is whooping my butt
Please give a demo I am unable to do manual calculation
This isnt on the exam anyways
The PMI is calculated from the loan amount no from the price of the property.
65% is only a number he gave based on several factors, but for this case is random.
However, PMI was calculated wrong in my opinion.