Are You Being Given All Of Your Mortgage Options?
There are more options when it comes to mortgage insurance other than the borrower paying it monthly. As a Mortgage Banker I feel it is my responsibility to give my clients as much information as I can so that they can make the best decision for them. Here are the different types of mortgage insurance there are on Conventional loans:
- Monthly Mortgage Insurance – this is where the borrower pays it every month for a minimum of 2 years and until they have a certain amount of equity. I say it that way because it’s not just having 20% equity. Sometimes it requires 25% equity, etc. Here is information from MGIC who is one of the Mortgage Insurance Company’s out there on Cancelling MI – http://www.mgic.com/mi-servicing/cancelling-mi.html#current-value
- Split MI – this is a combination of paying a smaller monthly MI premium and a one-time upfront premium
- Single Premium – this is where there is no monthly mortgage insurance and instead you pay a one-time upfront MI premium. (If the borrower has a high debt-to-income ratio, this option could help them qualify for a property they normally would not qualify for.)
Feel free to contact me with any questions.