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.