Standard Coverage (Auto-calc based on LTV)
Custom (Use specific factor)
Single Family Detached
Condo / Co-op
Manufactured Housing
Calculated LTV:–
Required Coverage:–
Annual Premium Rate:–
Monthly Premium:–
Note: This calculator provides estimates based on standard Borrower-Paid Monthly Premium rate cards. Actual MGIC rates may vary based on DTI, number of borrowers, and specific state regulations.
About MGIC Rates and PMI
The Mortgage Guaranty Insurance Corporation (MGIC) provides private mortgage insurance (PMI) which protects lenders against loss if a borrower defaults. PMI is typically required when a borrower makes a down payment of less than 20% of the home's purchase price.
The MGIC Rate Calculator helps prospective homebuyers and loan officers estimate the monthly cost of this insurance. The rate is not a flat fee; it is a percentage of the loan amount calculated based on risk factors associated with the borrower and the property.
Key Factors Affecting Your MGIC Rate
Loan-to-Value (LTV) Ratio: This is the most significant factor. It represents the percentage of the property value that is financed. Higher LTV ratios (e.g., 97% or 95%) carry higher risk and thus higher premium rates than lower LTVs (e.g., 85% or 90%).
Credit Score: Borrowers with higher credit scores (typically 760+) qualify for the lowest premium rates. As the credit score decreases, the insurance premium rate increases to offset the potential risk of default.
Property Type: Single-family detached homes usually have the standard rates. Condominiums, co-ops, and manufactured housing may be subject to rate adjustments or "add-ons."
Loan Term: While this calculator focuses on standard terms, loans with amortization periods greater than 20 years (like a 30-year fixed) generally have higher rates than loans with terms of 20 years or less.
Understanding the Formula
The calculation for monthly PMI generally follows this formula:
(Loan Amount × Annual Rate %) ÷ 12 = Monthly Premium
For example, if you borrow $300,000 and your assigned MGIC annual rate is 0.50%:
($300,000 × 0.0050) ÷ 12 = $125.00 per month
Frequently Asked Questions
What is "Coverage" percentage?
Coverage refers to the percentage of the loan balance that the insurance policy covers in the event of a default. The required coverage is determined by the LTV. For example, a 97% LTV loan typically requires 35% coverage, while a 90% LTV loan typically requires 25% coverage.
Can I remove MGIC insurance later?
Yes. Under the Homeowners Protection Act, borrowers can request to cancel PMI once their loan balance reaches 80% of the home's original value. It typically terminates automatically at 78% LTV.
Does DTI affect my rate?
Yes, the Debt-to-Income (DTI) ratio is a factor in modern risk-based pricing models. While simplified rate cards use LTV and Credit Score as primary drivers, a DTI greater than 45% often incurs a higher rate adjustment.
function calculateLTVPreview() {
var homeVal = parseFloat(document.getElementById('homeValue').value);
var loanAmt = parseFloat(document.getElementById('loanAmountInput').value);
var previewEl = document.getElementById('ltvPreview');
if (homeVal > 0 && loanAmt > 0) {
var ltv = (loanAmt / homeVal) * 100;
previewEl.innerText = "Current LTV: " + ltv.toFixed(2) + "%";
} else {
previewEl.innerText = "";
}
}
function calculateMGICRate() {
// 1. Get Inputs
var homeValue = parseFloat(document.getElementById('homeValue').value);
var loanAmount = parseFloat(document.getElementById('loanAmountInput').value);
var creditScore = parseInt(document.getElementById('creditScore').value);
var propertyType = document.getElementById('propertyType').value;
// 2. Validation
if (isNaN(homeValue) || isNaN(loanAmount) || homeValue <= 0 || loanAmount = homeValue) {
alert("Loan Amount cannot be greater than or equal to Home Value for standard PMI calculations.");
return;
}
// 3. Calculate LTV
var ltv = (loanAmount / homeValue) * 100;
// 4. Determine Rate Base (Simulated Standard Rate Card Logic)
// Note: Real-world MGIC rates are complex proprietary algorithms.
// These figures mimic standard Borrower Paid Monthly (BPM) rate cards.
var baseRate = 0;
var coverage = "0%";
// Coverage Determination logic based on standard Fannie Mae/Freddie Mac requirements
var coveragePct = 0;
if (ltv > 95) coveragePct = 35;
else if (ltv > 90) coveragePct = 30;
else if (ltv > 85) coveragePct = 25;
else if (ltv > 80) coveragePct = 12;
// Rate Logic Matrix (Score ranges vs LTV buckets)
// Rates approximated for educational simulation
if (ltv 97) {
// High risk / Not standard
baseRate = 2.0; // dummy high rate
} else {
// Logic for LTV > 80 AND 95) ltvBucket = 1;
else if (ltv > 90) ltvBucket = 2;
else if (ltv > 85) ltvBucket = 3;
else ltvBucket = 4;
// Base rates array [Score Index][LTV Bucket Index]
// Score Indices: 0:760+, 1:740, 2:720, 3:700, 4:680, 5:660, 6:640, 7:620
// LTV Indices (mapped to array 0-3): 0:>95, 1:>90, 2:>85, 3:>80
var rateMatrix = [
// 760+
[0.55, 0.38, 0.28, 0.19],
// 740-759
[0.75, 0.53, 0.38, 0.23],
// 720-739
[0.95, 0.71, 0.46, 0.27],
// 700-719
[1.15, 0.87, 0.60, 0.32],
// 680-699
[1.40, 1.09, 0.73, 0.39],
// 660-679
[1.90, 1.45, 1.05, 0.58],
// 640-659
[2.25, 1.70, 1.20, 0.68],
// 620-639
[2.80, 2.05, 1.35, 0.79]
];
// Map score value to index
var scoreIndex = 0;
if (creditScore >= 760) scoreIndex = 0;
else if (creditScore >= 740) scoreIndex = 1;
else if (creditScore >= 720) scoreIndex = 2;
else if (creditScore >= 700) scoreIndex = 3;
else if (creditScore >= 680) scoreIndex = 4;
else if (creditScore >= 660) scoreIndex = 5;
else if (creditScore >= 640) scoreIndex = 6;
else scoreIndex = 7;
// Get rate from matrix (adjusting bucket to 0-based index)
baseRate = rateMatrix[scoreIndex][ltvBucket – 1];
}
// Adjustments
// Property Type Adjustment (Simplified)
if (propertyType === 'condo' && ltv > 80) {
// Condo often adds minor adjustment if LTV is high or treated same in modern black box
// We'll add a small buffer for simulation accuracy
baseRate += 0.0; // Modern BPA often groups condos with SFD unless specific constraints apply, kept 0 for simplicity or add 0.12 if desired
}
if (propertyType === 'manufactured' && ltv > 80) {
baseRate += 0.20; // Typical add-on
}
// 5. Calculate Final Values
var monthlyPayment = 0;
if (baseRate > 0) {
monthlyPayment = (loanAmount * (baseRate / 100)) / 12;
}
// 6. Display Results
document.getElementById('resLTV').innerText = ltv.toFixed(2) + "%";
document.getElementById('resCoverage').innerText = coveragePct + "%";
if (ltv <= 80) {
document.getElementById('resRate').innerText = "0.00% (No PMI required)";
document.getElementById('resMonthly').innerText = "$0.00";
} else {
document.getElementById('resRate').innerText = baseRate.toFixed(2) + "%";
document.getElementById('resMonthly').innerText = "$" + monthlyPayment.toFixed(2);
}
document.getElementById('resultContainer').style.display = 'block';
}