Web Site Features PMI Calculator

Homeowners can discover whether they need to continue paying private mortgage insurance with the help of a new calculator introduced this month by HomeGain.

A run-up in home values in the last three years may have pushed millions of homeowners past the 22% equity level they need to drop their payments, according to a study by HomeGain, which operates a Web site that matches sellers with real estate agents.

Most lenders require the insurance for homeowners who are unable to put 20% down when they purchase houses. It’s important to note that some lenders require homeowners to pay for it for a certain period of time before they’re eligible to cancel it.

HomeGain’s calculator, at https://www.homegain.creativedata .net/hgcalc/, determines how much equity a homeowner has.

The calculator asks homeowners to enter their monthly premium, the original purchase price of their home, the original down payment, the outstanding loan amount and the house’s current value.

The tool calculates a homeowner’s loan-to-value ratio and the amount of equity they have in their home. It also projects the annual savings to the homeowner if insurance payments are eliminate.