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
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
Home Loan Programs Part II
Last week I discussed the importance of being informed on what loan programs there are available when shopping for a home loan. This is so that you can be best aligned with the right program for your circumstances. This week I am going to continue that discussion and talk about a few non-conventional programs. Below are just some of the non-conventional programs that are available to consumers. Read the rest of this entry