**Computing Private Mortgage
Insurance Using a Select Case Statement**

PMI is setup so that paying it amounts to adding a relatively small amount to each monthly payment. The following table summarizes the determination of the PMI payment. Each row is determined by the down payment percentage. |

Down
Payment Range |
Monthly
Payment for PMI |

5% < DP <
10% |
.0078(Mortgage Amount)/12 |

10% < DP <
15% |
.0052(Mortgage Amount)/12 |

15% < DP <
20% |
.0032(Mortgage Amount)/12 |

20% < DP |
Don't need PMI |

Obviously there are some advantages to putting down 20%
of a mortgage amount. The avoidance of the PMI payment is just one
of several.
The next thing we need to consider is how we can set
up a spreadsheet to help us determine the PMI monthly payment.
Having introduced some basic Visual Basic we can now create our own
user-defined function based on the a
So a test expression is evaluated and then depending on the value that it evaluates at, different cases will be selected. There can be some trickery involved in setting up the expression and specifying the case, but hte overall concept should make sense.
The down payment percentage alone determines the rate of payment. Thus the following function will work.
See how much easier this is than the nested If functions??? |