The formula to calculate the Loan to Value Mortgage Insurance (LVMi) is:
\[ LVMi = \frac{L}{V} \cdot MI \]
Where:
Let's say the loan amount (L) is $200,000, the property value (V) is $250,000, and the mortgage insurance rate (MI) is 0.01. Using the formula:
\[ LVMi = \frac{200000}{250000} \cdot 0.01 \]
We get:
\[ LVMi = 0.008 \cdot 0.01 = 0.008 \]
So, the Loan to Value Mortgage Insurance is $0.008.
