As a Senior Loan Officer, I think the biggest challenge in today’s economic and mortgage lending environment has to do with the amount of people that have had a bankruptcy, foreclosure, or short-sale; and sometimes all of the above. It is important to understand what the current lending guidelines are when trying to get pre-approved to purchase a home. While they are always subject to change, here are the current ones. Read the rest of this entry
Mortgage Insurance (MIP vs PMI)
Often times when one is considering the idea of purchasing a home, mortgage insurance is forgotten about when considering their monthly payment. When this happens, it can become a shock to the borrower. Mortgage insurance is always important to consider whenever one doesn’t have a minimum 20% down payment. There are two types of mortgage insurance depending on the loan program. These two types are Mortgage Insurance Premium (MIP) for FHA loans, and Private Mortgage Insurance (PMI) for conventional loans. Both of these types protect the lender in the event of a foreclosure by the borrower and allow the borrower to put less money down at the time of purchase on the home. Let’s discuss these two types further. Read the rest of this entry
“New Bubble” Talk, Premature
That was fast. A little over two years ago, we declared that housing had not only bottomed, but was about to start its first real growth spurt since the bubble. While some agreed, others expressed polite disagreement or, in some cases, incredulity. Read the rest of this entry
When can you cancel Mortgage Insurance?
Starting on June 3 of this year the Federal Housing Administration’s new policy on mortgage insurance premiums (MIP) went into effect. See how and when you can cancel mortgage insurance. Read the rest of this entry
Can You Answer “YES” To Any of The Following?
- Do you have an FHA loan?
While FHA loans are good for people who don’t have much money for a down payment, they become very expensive to hold on to for the full term of the loan. I have helped many clients with getting out of an FHA loan and into a much lesser expensive conventional loan product. This results in saving them thousands of dollars from carrying inflated mortgage insurance premiums.
- Do you currently pay for mortgage insurance? Read the rest of this entry