I have just enough money to make the required down payment. I was told that I will have to pay PMI.

What is PMI -- And how much will it cost?

PMI is Private Mortgage Insurance that protects your lending institution if you fail to make your mortgage payments.

If your down payment is less than 20% of the purchase price then your lending institution will most likely require you to purchase mortgage insurance. Generally, your monthly PMI payments are added to your monthly loan payments.

Use this calculator to quickly find out how much your PMI payments will be.

To calculate your PMI payments, enter the purchase price of your home, your down payment, and select whether the loan type is fixed or variable. Then click the Calculate button.

As always, the results of the calculations are close estimates. Talk to your lending institution to get the exact amount of your PMI.