Mortgage Insurance Defined

              

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Money Saving Minute #039 - Mortgage Insurance Defined

Kip Warzon     NMLS 289451

Mortgage insurance is a policy that is required by a lender when a buyer less than 20% down payment or a home owner has less than 20% equity in their home.  To be clear, mortgage insurance does not protect the property.  Mortgage Insurance is in place to insure that the lender does not lose money should a borrower default on their loan. 

If you are currently paying MI you should contact a qualified lender to see if there are other options available.  Your lender may be able to explore refinance options that will eliminate the monthly mortgage insurance payments even with less that 20 percent equity.  

Money Saving Minute #030 – Mortgage Insurance Options

Mortgage Insurance Options.  FHA is changing their mortgage insurance requirements.  Now is the time to have your mortgage reviewed to see if you are in the best position.  Click play for more information.

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Money Saving Minute #030 – Mortgage Insurance Options.  Last week we talked about the changes that FHA will be making to their annual mortgage insurance premiums.  It was mentioned at the end of the video that there are other options available.  Mortgage insurance is available for conventional loans for borrowers with less than 20% equity.  The difference is private mortgage insurance carriers have competition so the rates are often better than FHA.  Private mortgage insurance is also prorated to the amount of equity that you do have in a home.  Finally, private mortgage insurance will have payment options such as monthly, onetime payment or split premiums.  If you are currently paying mortgage insurance or have been in an FHA loan for several years now is a good time to have your mortgage reviewed.  Take a look at all of your options and make sure that you are in the best loan product before rates and programs change.

FHA Mortgage Insurance Changes

Money Saving Minute #029 - FHA Mortgage Insurance Changes
No joke, folks.  It's coming and it's 28k big.  There are other lending options and we should explore them all for you.  For now, however, be aware of the deadline for the FHA annual premium changes.

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Money Saving Minute #029 – FHA Mortgage Insurance Changes

There are two changes on the horizon for FHA borrowers.  The first went into effect on April 1^st.  The annual mortgage insurance premiums on all FHA mortgages went up one tenth of one percent.  This equates to about $8.34 per month per $100,000 borrowed. 

The second change will go into effect on June third of two thousand thirteen.  This change is a much more significant so listen closely.  For case numbers requested after June third the mortgage insurance on all FHA loans with less than 10% equity will continue for the life of the loan.  In plain English, if you are planning on buying a home with the minimum 3.5% down payment on a thirty year term you will be paying over $26,000 per $100,000 borrowed more in mortgage insurance over the life of the loan. 

The moral of the story my friends is if you are holding off on buying that new home in hopes that the price will come down stop thinking and put in an offer.  Waiting until after June third is going to be extremely costly.