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Future Value Calculator

Comparing Mortgage Insurance Options

Who This Calculator is For: Borrowers trying to decide which of three mortgage insurance options
they should select based on the lowest total cost over a specified future period.

What This Calculator Does: This calculator compares the total cost of three
mortgage insurance options over a specified future period.

Information About Transaction
   Is This Loan for the Purchase of a Property or a Refinance?
  Expected Years in House, Cannot Exceed Term
  Rate of Interest on Savings  (e.g. 3.5)
  Income Tax Bracket ( e.g. 27 )
  Current Value of House (e.g. 225000)
   Assumed Annual Rate of Property Value Appreciation
  Will Mortgage Insurance be Deductible for You? Yes      No  
  Number of Years Mortgage Insurance Will Be Deductible For You  
  Loan Amount  
  Term ( in years )
Mortgage Insurance, Monthly Premium (MP)
  Interest Rate  (e.g. 7.50)
  Points  (% of Loan) — Check box if charges will be added to loan
  Monthly Premium ( in $ )
Mortgage Insurance, Single Premium with Rebates (SPW)
  Interest Rate  (e.g. 7.50)
  Points  (% of Loan) — Check box if charges will be added to loan
  Single Financed Premium ( in $ )
Mortgage Insurance, Single Premium without Rebates (SPWO)
  Interest Rate  (e.g. 7.50)
  Points  (% of Loan) — Check box if charges will be added to loan
  Single Financed Premium ( in $ )


This is your marginal tax rate, the rate at which each additional dollar of income will be taxed. If you pay only Federal income taxes, it is the highest tax bracket you used when you calculated your taxes. Federal tax brackets currently are: 10%, 15%, 25%, 28%, 33%, and 35%. If you also pay state and/or local income taxes, these marginal rates can be added to the Federal rate. For example, if you had to pay 25% to the IRS and 5% to the state of Pennsylvania, your tax bracket is 30%. To perform a "pre-tax" analysis enter zero (0) as the tax rate. The period cannot exceed the shortest mortgage term. The period may be stated in fractions. For example, 25 years and 1 month would be entered as 25.083, 25 years and two months would be 25.167, and 25 years and 3 months would be 25.25, etc. All settlement costs that might differ between any two deals. This includes all lender fees of any sort, and all third party fees (such as title insurance, apprraisals and credit report), but excluding charges of governments which cannot vary from one deal to another. Do not include escrow reserves for taxes and insurance, or prepaid (per diem) interest. Mortgage Insurance is now tax deductible if your income is $100,000 or less for a couple, $50,000 or less for a single person. This is the interest rate you could earn on the monies you spend during the period you are in your home. For most people, it would be the interest rate on a bank account or a money market fund. In after-tax cost comparisons, this figure is adjusted to an after-tax basis. The size of the mortgage insurance monthly premium is triggered by the down payment percentage. Mortgage insurance premiums drop significantly as the down payment crosses the 3%, 5%, 10%, 15% and 20% levels. When deciding on your down payment be sure to take this into account. Must be entered as a dollar amount. Can be entered as a positive or negative amount. If negative, any amount in excess of All Other Fees Paid to Lender will be retained by the loan provider. This is required only if your are now paying mortgage insurance. If you are paying mortgage insurance, we need to know the value of your house when the current loan was taken out so that we can figure out when the insurance payment will stop. We assume it stops when the balance reaches 80% of original value. Enter as a dollars and cents amount. Premium terminates automatically when the loan balance reaches 78% of original property value. If still in force after 10 years, the premiums drop to 0.2%. Borrower pay monthly mortgage insurance will be terminated when the loan balance equals 80% of the appreciated value of the property after year 5, or 75% during years 2 to 5. This affects the after-tax interest cost because on a purchase transaction points are fully deductible in the first year whereas on a refinance the deduction must be spread over the life of the loan, with the remaining portion of the deduction taken in the year the loan is paid in full. Enter as dollar and cents amount. A single payment by the borrower which is included in the loan amount, with pro-rated rebates if the loan is terminated within the first 5 years. “Enter as dollar and cents amount. A single payment by the lender which is passed through to the borrower in points which are included in the loan amount,or in the rate.