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:

  1. 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
  2.  Split MI – this is a combination of paying a smaller monthly MI premium and a one-time upfront premium
  3. 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.