With a sale price of $323,500 and an LTV of 85%, what is the monthly PMI factor when given an actual year calculation of .0033?

To determine the monthly PMI (Private Mortgage Insurance) factor, first, calculate the loan amount based on the sale price and the loan-to-value (LTV) percentage. The LTV of 85% means the lender is willing to finance 85% of the sale price.

1. Calculate the loan amount:

[

\text{Loan Amount} = \text{Sale Price} \times \text{LTV} = 323,500 \times 0.85 = 275,975

]

2. With the loan amount established, the next step is to calculate the annual PMI premium using the actual PMI factor of 0.0033. This factor is applied to the loan amount, giving us the annual PMI:

[

\text{Annual PMI} = \text{Loan Amount} \times \text{PMI Factor} = 275,975 \times 0.0033 = 910.72

]

3. Next, to find the monthly PMI, simply divide the annual PMI by 12:

[

\text{Monthly PMI} = \frac{\text{Annual PMI}}{12} = \frac{910.72}{12