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
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
Many times in the process of the loan application we forget to answer the most basic questions, and many times the simple answer’s help to understand the process a little better. For example: Mortgage payment? How is the payment separated out, when is it due, and how do they decide who has to have mortgage insurance and who doesn’t. Below are just a few interesting facts about the “mortgage payment”. Read the rest of this entry
I was reading a very interesting article about mortgage insurance and wanted to share it. I think this is a perfect answer the the question that I have gotten for many years about “Mortgage Insurance” and what it is for: Read the rest of this entry